30-Year Treasury Yield Hits 5.33%, Highest Since 2002

On Tuesday, U.S. 30-year Treasury yields increased by 2 basis points to 5.33%, marking their highest level since 2002. This rise is attributed to concerns over the U.S. fiscal situation, highlighted by a fiscal deficit of $432.3 billion in July, the highest since March 2021, leading to a year-to-date shortfall of nearly $1.8 trillion. The 10-year Treasury note yield rose to 4.74%, while the 2-year Treasury note yield reached 4.186%. These trends indicate rising government borrowing costs and may impact borrowing rates for ordinary consumers, making it significant for investors.