US 30-Year Bond Yield Set To Reach Highest Level Since 2001

The U.S. government is preparing to sell $25 billion in 30-year Treasury bonds at a borrowing cost expected to be the highest in roughly 25 years.

According to the report, the new bonds were projected to yield around 5.23 percent in the when-issued market, a level not seen since the Treasury stopped issuing long-term debt in 2001.

The report said rising long-term yields are creating additional pressure on the Trump administration and Treasury Secretary Scott Bessent as the government faces large fiscal deficits and increasing interest payments.

Investors have become more cautious about long-dated U.S. debt amid concerns over inflation, higher energy prices, increased government borrowing and heavy corporate debt issuance linked to artificial intelligence infrastructure.

However, investors remain reluctant to increase exposure to long-duration securities despite yields reaching multi-year highs.

The report said federal interest payments have already reached $1.17 trillion for the fiscal year to date, up 15 percent, adding to the government's budget deficit.

While recent inflation data eased some pressure on bond yields, markets remain divided over the Federal Reserve's future interest-rate policy and the sustainability of demand for long-term U.S. debt.

Related Tweet:

The US government is about to sell 30-year bonds at the highest interest rate in a quarter of a century https://t.co/CHJo5aySI7

— Bloomberg (@business) August 13, 2026

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tippinsightsTIPP Staff