US 30yr yield rises to the highest level since July erasing NFP-induced drop | investingLive

As mentioned already in a previous post on UK long term yields here, the rise in long term rates is a global phenomenon. People are blaming government spending for this but central banks are also a big part of the problem.

The dovish reaction function from central banks is causing market participants to shy away from long term bonds. The strongest examples are the UK and US yields. The BoE has been cutting interest rates in the face of the highest
inflation among the G7 countries with a government that continues to run
big deficits.

The Fed continues to maintain a dovish stance and even signalling imminent rate cuts despite the economic data showing an economy that is picking up momentum and inflationary pressures intensifying.

In the chart above, we can see that US 30yr yields (blue line) have been falling with Fed rate cuts (red line), but that hasn’t been the case in the past year. The Fed cut rates but US 30yr yields gone up. The bond market has been sending a clear message to the Fed: “you are making a mistake”.