U.S. Treasuries sell off, yields surge, 30-year hits 5.44%, hit 2004 high

First published 9-24 22:00

Update time 9-25 05:44

U.S. Treasuries have been hit by a sell-off, sending yields higher. Schematic diagram. (Bloomberg)

[Financial Channel/Comprehensive Report] The global bond market is rumbling, and the selling wave continued to heat up on Thursday (24th). The 30-year U.S. Treasury bond yield (bond yields and prices move in opposite directions) once hit 5.44% during the session, the highest since 2004; the 10-year U.S. bond yield once climbed to 5.133%, setting a new high since July 2007. Japanese and European government bonds have also been sold off simultaneously. A "perfect storm" in the bond market formed by oil prices, inflation, a strong U.S. economy and expectations of rising interest rates is sweeping the world.

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CNBC reported that the 30-year U.S. Treasury bond yield hit its highest level since 2004 on the 24th, at about 5.44%. The 10-year U.S. Treasury yield surged to 5.133%, its highest level since July 2007.

This wave of selling pressure has also swept the world, with Japan's 10-year government bond yield rising to its highest level since August 1996, and European government bond yields such as the United Kingdom and Germany also rising simultaneously.

U.S. bond yields have continued to rise in recent months, and selling pressure suddenly accelerated on Wednesday, with the 10-year yield recording its largest one-day rise since April 2025. The Wall Street Journal described the bond market as experiencing a "perfect storm."

First, the progress of U.S.-Iran diplomacy was not as good as expected. Brent crude oil once returned to above US$103 per barrel, and the market was worried that energy prices would once again push up inflation.

Secondly, S&P Global's latest U.S. Composite PMI shows that business activity expanded at the fastest rate in more than five years, and employment growth also hit the fastest pace in more than four years, highlighting that the U.S. economy is still quite resilient.

Fed officials issued another hawkish signal. Fed Governor Michael Barr said that inflation is still above the 2% target and there is no obvious sign of falling in the short term. According to CME FedWatch, the market is betting that the probability of the Fed raising interest rates again in October has exceeded 75%, compared with only about 49% a week ago.

Finally, demand for the U.S. Treasury's 5-year Treasury bond auction was weak, and the winning yield was higher than market expectations, indicating that even though U.S. bond yields have risen to high levels, investors are still in no hurry to enter the market.

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