Treasury yields surge as 30-year hits 5.236%, highest since 2007

U.S. Treasury yields surged on July 30, 2026, with the 30-year bond yield climbing to 5.236%, its highest since July 2007. The sell-off deepened a day after the Federal Reserve voted to hold interest rates steady.

The Fed on July 29 kept its benchmark rate in a range of 3.5% to 3.75% in a 9-3 decision, the second policy meeting led by Chairman Kevin Warsh. The Federal Open Market Committee noted that economic activity is expanding at a solid pace despite elevated Middle East uncertainty and that an unchanged unemployment rate has accompanied job gains.

Yields on the 10-year note jumped more than 8 basis points to 4.7%, and the 2-year note added 5 basis points to 4.289%.

Deutsche Bank analysts said their economists still expect the Fed to raise rates by 50 basis points this year, with quarter-point moves in September and December. They added that the FOMC is unlikely to be comforted by the bond market's reaction, as rising long-term yields and falling forward real yields point to doubts that price stability will be restored soon.

The analysts also noted that overall U.S. credit conditions remain supportive but warned that a steeper yield curve could strain the weak housing market.

Investors on July 30 awaited the weekly jobless claims report and the personal consumption expenditures price index for June. A Dow Jones estimate projected annual headline inflation of 3.7% and core inflation of 3.3%.