The 30-year U.S. Treasury yield surged to 5.31% today, marking its highest level since June 2007 and extending a relentless selloff in long-dated government bonds that has confounded traditional market logic. The 10-year yield (TOQ26) also climbed to approximately 4.72%, while the 2-year yield remained near 4.18%, producing a dramatic steepening of the yield curve that reflects structural concerns far beyond near-term monetary policy expectations.
What makes this move particularly unusual is that it has occurred against a backdrop of weakening economic data that would normally push long-term yields lower. July employment unexpectedly declined by 23,000 jobs, retail sales fell 0.6% month-over-month, and the consumer price index moderated to 3.4% year-over-year from 3.5% the prior month.
