The 30-year U.S. Treasury yield reached 5.311% on Monday, its highest level since June 2007. Fundstrat technical strategist Mark Newton forecasts yields could climb to 5.60%-5.70%. Three factors could sustain this upward pressure: rising bond yields in Japan spilling into U.S. markets, the U.S. economy remaining strong enough to force the Federal Reserve to hike rates further, and concerns around heavy Treasury issuance and persistent inflation. The latest 30-year Treasury auction cleared at its highest yield since 2001. Deutsche Bank warned that current market pricing is leaving almost no margin for error.
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