Skip to content
Subscriber Only

Treasury Long Bond Reaches 2% Milestone as Global Yields Awaken

  • Move reflects U.S. stimulus bets, rising inflation expectation
  • Weekend comments by Yellen, Lagarde also weigh on bonds
Updated on

Bonds slid across the world to send yields to the highest in nearly a year, fueled by prospects for U.S. stimulus and expectations for quicker inflation.

The selloff pushed the yield on 30-year Treasuries up by as much as three basis points to 2%, the highest since February 2020. The milestone is psychologically important, in part because 2% is the Federal Reserve’s goal for consumer prices. Yields from the U.K., Japan and Australia followed suit, hitting levels last seen during market turmoil in March.