US 30-year Treasury yield hits highest level since 2004
US government borrowing costs have continued to climb, with the yield on 30-year Treasury bonds reaching its highest level in more than two decades.
The 30-year yield rose as high as 5.44% on Thursday, its highest since 2004, as concerns over inflation, higher energy prices and government borrowing continued to weigh on the bond market.
Listen to this article
The move followed a jump in Brent crude oil prices and comes during a broader sell-off that has pushed US Treasury yields across different maturities to around their highest levels since 2007.
Investors are demanding greater returns to hold long-term government debt amid concerns that economic growth, elevated energy prices, inflation and increased government borrowing could keep pressure on prices.
The rise in yields could also feed through to higher borrowing costs for American households, including more expensive mortgages and loans.
The US Treasury expanded its bond buyback programme in August in an effort to ease pressure on long-term borrowing costs, but the measure has so far had little sustained impact on the market.