Yields on 30-year U.S. Treasury bonds reached their highest level since 2002

The yield on 30-year U.S. Treasury bonds exceeded 5.59% on September 29, reaching a level last seen in 2002 following the dot-com crash, according to Bloomberg. The yield has been rising for the sixth consecutive trading session, breaking through yet another key threshold amid a deepening sell-off in global debt markets.

According to the agency’s estimates, U.S. Treasury bonds have lost 2.6% of their value since the beginning of the year, whereas during the same period last year, they actually gained 6.3%. The sell-off affected debt with a wide range of maturities: the yield on 10-year Treasuries rose to 5.24%, the highest level since 2007. The yield on 2-year Treasury bonds stands at around 4.9%.

Bloomberg notes that the latest rise in yields occurred against a backdrop of high energy prices, which intensified inflationary pressures, as well as large corporate bond offerings, which complicated the market situation.

The sell-off continues in debt markets around the world: High oil prices caused by the war in the Middle East are fueling inflation, forcing investors to bet that central banks, including the Federal Reserve, will continue to raise interest rates, the agency explains.

In the U.S., the decline in the price of government bonds (which falls when Treasury yields rise) was also driven by an increase in business activity and concerns about the level of public debt. As a result, the current sell-off has become the largest since U.S. President Donald Trump imposed tariffs in April 2025, which sent markets tumbling.

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