U.S. Treasury yields continue to climb at a particularly bad time as government debt approaches $40 trillion. The 30-year bond yield is near its highest level since the early 21st century, having risen more than 40 basis points since late June. The budget deficit reached $432.3 billion in July, pointing toward a full-year shortfall of $2 trillion for the fiscal year ending September 30. The move is driven by intensified deficit concerns, persistent inflation around 2.5%, and a surge in corporate bond issuance that has reached nearly $1.7 trillion this year, up 27% year over year. The Federal Reserve has kept its benchmark rate steady between 3.50%-3.75%, with markets now pricing in little chance of a hike before December.
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