The US Treasury will auction $25 billion in 30-year bonds on August 13, with an expected yield above 5.2%, a level not seen since 2001. Previous 2026 auctions already crossed the symbolic 5% threshold for the first time since 2007. This increase is driven by persistent inflation concerns and the growing scale of federal debt, which is putting structural upward pressure on yields. The interest cost on this $25 billion tranche of debt will compound for three decades at roughly double the rate seen just a few years ago. If demand for long-duration debt remains weak, the Treasury could shift issuance toward shorter maturities such as 2-year or 5-year notes.
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