30-Year Treasury Yields Hit Highest Level Since 2007 Amid Weak Data and Fiscal Woes

U.S. stocks fell Monday as the 30-year Treasury yield climbed to 5.3103%, its highest close since 2007, despite weaker economic data that normally could support lower yields. The 10-year yield rose to 4.724%. Retail sales unexpectedly declined 0.6% in July, while markets reduced the probability of a September Federal Reserve policy move. Reuters reported that Barclays strategist Anshul Pradhan pointed to fiscal concerns, heavy corporate bond issuance and weak demand at the long end of the Treasury market as factors behind the unusual bond selloff. A recent 30-year Treasury auction produced a yield near 5.22%, the highest for such an auction since 2001, before secondary-market yields moved higher. Oil prices also rose as tensions involving Iran raised supply concerns, adding inflation pressure. The S&P 500 fell 0.52%, the Dow 0.51% and Nasdaq 0.31%. The episode highlights competing pressures from slowing demand, government borrowing, corporate financing, oil prices and geopolitical risks.