The sharp drop in the bond market pushed long-term US Treasury yields to their highest level in months, and the winning yield on the 10-year treasury bonds auctioned on Tuesday is expected to reach the highest level in 17 years. Although the 10-year yield hit 5% at the end of 2023, if the winning bid yield remains at the current market level of 4.64% at 1 p.m. EST, it will be the highest yield on new bonds since August 2007. Although Treasury yields were basically flat in early Tuesday trading in the US, the 10-year yield briefly broke through 4.64%, the highest since May. The yield on 30-year treasury bonds surpassed 4.87% for the first time in more than a year. Unless treasury bonds rise sharply, the winning bid yield on Wednesday's 30-year treasury bonds will also hit the highest level since 2007. Michael Cloherty, head of US interest rate strategy at UBS Securities, said, “People are still worried that the rising risk of inflation will cause more term premiums, and they are worried that these budget deficits will need to be funded through debt issuance. The current situation has changed compared to last year, and now they are more concerned about a soft or no economic landing, rather than a hard landing.”

The sharp drop in the bond market pushed long-term US Treasury yields to their highest level in months, and the winning yield on the 10-year treasury bonds auctioned on Tuesday is expected to reach the highest level in 17 years. Although the 10-year yield hit 5% at the end of 2023, if the winning bid yield remains at the current market level of 4.64% at 1 p.m. EST, it will be the highest yield on new bonds since August 2007. Although Treasury yields were basically flat in early Tuesday trading in the US, the 10-year yield briefly broke through 4.64%, the highest since May. The yield on 30-year treasury bonds surpassed 4.87% for the first time in more than a year. Unless treasury bonds rise sharply, the winning bid yield on Wednesday's 30-year treasury bonds will also hit the highest level since 2007. Michael Cloherty, head of US interest rate strategy at UBS Securities, said, “People are still worried that the rising risk of inflation will cause more term premiums, and they are worried that these budget deficits will need to be funded through debt issuance. The current situation has changed compared to last year, and now they are more concerned about a soft or no economic landing, rather than a hard landing.”