U.S. 30-Year Treasury Yield Tops 5.2%, Highest in 11 Years

[Financial News]

The yield on the 30-year U.S. Treasury, the benchmark for long-term U.S. interest rates, rose above 5.2% on the 29th (local time). The 10-year Treasury yield, the benchmark issue, also came close to 4.7%.
Although the Federal Reserve kept its benchmark rate unchanged at 3.50% to 3.75% at the end of the Federal Open Market Committee (FOMC) meeting that day, Treasury yields were pushed higher after three committee members voted against the decision and called for a rate hike.
According to CNBC, the 30-year yield jumped 0.125 points, or 2.45%, to 5.221%. The 10-year yield also surged 0.09 points, or 1.95%, to 4.694%.
The 30-year yield climbed to its highest level in 11 years, since 5.244% in July 2007.
By contrast, other Treasury yields fell across the board, led by the 2-year yield, which is highly sensitive to Federal Reserve monetary policy and slipped 0.013 points.
The rise in long-term Treasury yields while short-term yields fell is seen as reflecting concerns over an economic slowdown and fiscal deficits.
Long-term Treasury yields rose on expectations that if the Federal Reserve keeps rates high, the federal government's interest burden will increase, widening the fiscal deficit and prompting more long-term Treasury issuance to cover it.
Meanwhile, the decline in short-term Treasury yields, or the rise in short-term Treasury prices, appears to reflect the market's sensitivity to the near-term path of benchmark rates.
In addition, investors flocked to short-term Treasuries as demand for safe-haven assets strengthened amid concerns about an economic slowdown.
Gold, a representative safe-haven asset, rose $9.60, or 0.24%, to $4,048.30 per ounce for August delivery.

[email protected] Song Kyung-jae Reporter