U.S. Treasury Yields Cross 5% as Investors Rethink Bond Strategy
The U.S. Treasury market faced renewed selling pressure this week, driving long-term bond yields above the closely watched 5% level.
According to information from CNBC on Thursday, 20- and 30-year Treasury yields climbed to 5.136% and 5.128%, respectively, before trimming earlier gains.
The move has caught the attention of fixed-income investors, many of whom are now reassessing their allocation strategies.
As bond prices drop, yields rise—highlighting market tension amid ongoing concerns about U.S. fiscal policy and debt management.
Fiscal Worries Fuel Market Volatility
The latest surge in yields follows a combination of negative catalysts, including a U.S. credit downgrade and a contested Republican spending plan.
These developments have fueled skepticism over the sustainability of government borrowing and long-term fiscal discipline.
Meanwhile, shorter-term Treasurys haven’t escaped the volatility. The 10-year benchmark note recently traded at 4.593%, giving up gains from earlier in the session.
Treasurys No Longer Seen as a Safe Haven?
Rising borrowing costs are forcing investors to reconsider the traditional role of U.S. Treasurys as a reliable safe-haven asset.
Many analysts warn that persistent yield increases could challenge the long-held status of government bonds as a conservative portfolio anchor.
With long-end yields above 5%, the bond market is sending a strong signal—and investors are beginning to pay attention.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
