Treasury Yields Hit Highest Level Since 2007—Here’s Why Analysts Worry About U.S. Debt

BreakingBusinessTreasury Yields Hit Highest Level Since 2007—Here’s Why Analysts Worry About U.S. DebtByTy Roush,Forbes Staff. Ty Roush is a breaking news reporter based in New York City.Follow AuthorMay 19, 2026, 11:30am EDTToplineLong-term Treasury yields hit their highest level since the global financial crisis in 2007 on Tuesday, highlighting broader investor concerns about inflation and fiscal policy in the U.S., as some analysts anticipate a steeper selloff for bonds. The U.S. national debt approached $39 trillion as analysts warned about long-term inflation. Copyright 2020 The Associated Press. All rights reserved.Key FactsYields on 30-year U.S. Treasury notes rose just over 5.19% as of Tuesday morning, the highest level for the long-term bonds since June 2007, while 10-year yields—a gauge for mortgage rates, auto loans and credit card debt—climbed to 4.68%, their highest level since January 2025.A survey of global hedge fund managers published by Bank of America on Tuesday found that 62% of respondents believe 30-year yields will hit 6%, potentially matching their highest level since 2007, as 40% of managers anticipated a further surge in inflation. Ajay Rajahdyaksha, Barclays’ global chairman of research, wrote Monday the U.S. debt was rising faster than its economic growth, inflation is expected to be higher or more volatile and there’s “no political will for fiscal reform,” adding investors are not motivated to purchase long-term bonds.Guneet Dhingra, head of U.S. rates strategy at BNP Paribas, told Reuters that 30-year yields lost their projected ceiling after crossing the 5% threshold: “Now that we have no anchor, what stops bond yields from going up in a world of high inflation, ever-rising deficits and global bond yield pressure?”The higher rates pulled down the broader stock market on Tuesday: The Dow Jones Industrial Average dropped roughly 121 points, or 0.2%, while the S&P 500 and Nasdaq fell 0.7% and 1.2%, respectively. if (!window.cnxel) { w...