U.S. 30-Year Treasury Yield Exceeds 5% Amidst Credit Rating Downgrade

The yield on the U.S. 30-year Treasury bond has surpassed 5%, reaching 5.011% intraday, amid concerns over fiscal health following Moody’s downgrade of the U.S. credit rating from Aaa due to large deficits and rising interest costs.

Last reached this level on April 9 during market sell-offs.
Bitcoin declined to a local low near $75,000 then but has since rallied to approximately $103,000, peaking at $106,000 recently.
30-year yield last closed above 5% on October 31, 2023, close to the highest recent close of 5.11% on October 19—levels not seen since 2007.
The U.K. now holds $779.3 billion in Treasuries, overtaking China as the second-largest foreign holder, while both China and Japan are reducing their holdings.
Increased bond issuance to cover budget shortfalls is driving yields up and prices down.
Nasdaq futures have dropped around 2%, indicating rising risk aversion.