US 30-year Treasury yield hits 5.53%, highest since June 2004

The US 30-year Treasury yield rose to 5.53%, the highest level since June 2004, up 25 basis points over three days amid a sharp bond sell-off. US mortgage rates are expected to exceed 7.50% today. Source: The Kobeissi Letter. Link: https://t.co/bOaYLUOzFm

Key figures

- 30-year Treasury yield: 5.53%
- Move over three days: +25 basis points
- Expected US mortgage rates: above 7.50%
- Historical reference: highest 30-year yield since June 2004

Implications

- Financial conditions: tighter as long-term borrowing costs rise
- Housing: affordability pressure increases with mortgage rates above 7.50%
- Markets: higher discount rates and improved yields on safe assets tend to weigh on equities and crypto
- Macro signals: persistent inflation risk or greater term premium and supply concerns reflected in long-end yields