The 30-year US Treasury yield surged to 5.34% in August, its highest level since 2007, prompting the Treasury Department to announce a doubling of its long-dated bond buybacks. US national debt crossed the $40 trillion threshold for the first time, while net foreign purchases of US Treasuries fell to their lowest since January 2026. Sovereign bonds in the UK, Japan and other major economies now offer competitive yields, diverting foreign investors from US paper. This situation is putting increasing pressure on borrowing costs, from mortgages to corporate bond issuances.
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