Long-Term US Treasury Yield Hits Nearly Three-Year High, Inflation Concerns Trigger Global Bond Market Sell-Off

BlockBeats News, May 18th, as investors' concerns about accelerated inflation triggered a global bond market sell-off, the yield on U.S. long-term Treasuries rose to the highest level in nearly three years. With U.S. President Trump pressuring Iran to reach an agreement to end the Iran War, which caused oil prices to continue rising, the 30-year Treasury yield rose by 4 basis points to 5.16% at one point, reaching the highest level since October 2023. The yields on the 10-year and 2-year Treasury notes touched 4.63% and 4.10%, respectively, the highest since February 2025.

On the Japanese side, the 30-year JGB yield surged by 20 basis points to 4.2%, hitting the highest level since its issuance in 1999. Bond traders often view the 5% yield level on the 30-year U.S. Treasury as a "line in the sand," believing that this level would attract bargain hunters. Gunit Chadha, Head of U.S. Rate Strategy at Farva Bank, said, "There is no anchor point above 5%." He suggested focusing on a trading range of 5.25% to 5.5% for the 30-year U.S. Treasury.