The 30-year Treasury yield surged to 5.34% in mid-August, its highest level since 2007, while the benchmark 10-year yield tested 4.80%, a mark not seen since January 2025. US national debt has crossed the $40 trillion threshold with the federal budget deficit running near 6% of GDP. Approximately $500 billion in AI-related corporate debt has been issued in 2026. Traders executed a $6.5 million options position betting that the 30-year yield will reach 5.7% by late November. Rising Treasury yields are pushing all borrowing costs higher across the economy, from homebuyers to corporations refinancing debt.
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