US 30-year Treasury yield hits highest level since 2004 at 5%

Germany: Germany is a major developed economy whose government issues Bund bonds as a key European debt instrument. Its finance agency manages federal borrowing needs amid rising refinancing and special fund requirements. The news highlights Germany's expected record borrowing in 2026 and rising 10-year Bund yields as part of a broader global bond market selloff. Scott Bessent: Scott Bessent serves as US Treasury Secretary in the current administration. He has implemented measures such as expanding debt buybacks and currency interventions to moderate borrowing costs. The news notes his efforts have not yet succeeded in reversing the climb in long-term US Treasury yields. US Government: The US Government issues Treasury securities across various maturities to finance federal operations and debt obligations. It maintains the world's deepest and most liquid government bond market, serving as a global benchmark for borrowing costs. In this news, rising US Treasury yields reflect investor demands for higher compensation amid strong economic growth, elevated debt levels, and geopolitical pressures from the Iran conflict. Chris Scicluna: Chris Scicluna is head of economic research at Daiwa Capital Markets. He provides analysis on bond market dynamics and their economic implications. In the news, he comments on how higher yields worsen mortgage costs and increase the federal government's debt interest burden. Geopolitics: Ongoing conflict involving the US and Israel against Iran has raised energy prices and contributed to higher long-term bond yields globally. Growth Outlook: US economic activity shows resilience with robust corporate profits, supporting investor absorption of higher yields despite elevated borrowing costs. Policy Response: US Treasury Secretary Scott Bessent has pursued debt buybacks and other interventions in an attempt to ease pressure on long-dated yields, though markets have shown limited response.