US Bond Market Crash Risk: 30-Year Yield Hits 19-Year High

U.S. long-term Treasury yields hit their highest levels in years Tuesday before retreating Wednesday after the Treasury Department announced larger buybacks of longer-dated debt. The 30-year Treasury yield reached 5.327% on Aug. 18, its highest since 2007, while the 10-year yield reached about 4.74%, according to market reports and Treasury data. Investors cited persistent inflation concerns, higher oil prices, heavy government borrowing and increased corporate debt issuance. BTIG strategist Jonathan Krinsky warned that a rapid move toward a 6% 30-year yield could pressure equity valuations, although he did not say such a level would automatically cause a stock-market crash. On Aug. 19, Treasury said it would at least double liquidity-support buybacks to $4 billion per operation for longer-dated nominal securities beginning Sept. 9. Yields subsequently declined. South Korea’s KOSPI also fell sharply Wednesday amid a semiconductor-led sell-off. The episode remains a market-risk story, not evidence of a confirmed bond-market crash.