BlockBeats report: On May 18, amid investor concerns over accelerating inflation triggering a global sell-off in bond markets, yields on U.S. long-term Treasuries rose to their highest level in nearly three years. Following U.S. President Trump's pressure on Iran to reach an agreement to end the Iran war, which extended the rally in oil prices, the 30-year Treasury yield climbed 4 basis points to 5.16%, reaching its highest level since October 2023. The 10-year and 2-year Treasury yields hit 4.63% and 4.10%, respectively, their highest levels since February 2025.
In Japan, the 30-year Japanese government bond yield surged 20 basis points to 4.2%, reaching the highest level since its issuance in 1999. Bond traders often view the 5% yield level on 30-year U.S. Treasuries as a "line in the sand," believing it attracts bargain buyers. Gunit Dingle, Head of U.S. Interest Rate Strategy at BNP Paribas, said: "There is no anchor point above 5%." He recommends monitoring the trading range of 5.25% to 5.5% for 30-year U.S. Treasuries.