US 30-year bond yield tops 5% as Kevin Warsh takes Fed helm and inflation rises
Euronews reported on May 14 that the US Treasury sold 30-year bonds at a yield above 5% for the first time since 2007.
At a glance
- The US Treasury sold 30-year bonds at a yield above 5% for the first time since 2007
- The auction coincided with the Senate's confirmation of Kevin Warsh as next Fed chair
VERDICT — CONFIRMED
The US Treasury sold 30-year bonds at a yield above 5% for the first time since 2007, Euronews reported on May 14, with the auction landing just as the Senate confirmed Kevin Warsh as the next chair of the Federal Reserve.
Per Euronews, the Treasury sold $25 billion in 30-year bonds on Wednesday at a yield of 5.058%, and the bonds traded at 5.02% on Thursday. Warsh's confirmation to succeed Jerome Powell came the same day as the auction, per the report.
The backdrop is rising inflation: consumer prices rose 3.8% year-over-year, per Euronews, with the Iran war contributing to elevated energy costs and producer price data pointing to sustained cost pressures.
Per the report, the elevated yields underscore investor concern about persistent inflation despite two years of restrictive policy. The 5% level is a threshold last reached in 2007, though Euronews notes current conditions differ substantially from that pre-crisis period.
Key facts on file
- The US Treasury sold 30-year bonds at a yield above 5% for the first time since 2007
- The auction coincided with the Senate's confirmation of Kevin Warsh as next Fed chair
