30-Year Treasury Yield Hits 2007 High as Bond Market Doubts the Fed
The US government has not paid this much to borrow money since 2007. The 30-year Treasury yield closed at 5.20% on Wednesday, hours after the Federal Reserve left interest rates alone.
Three Fed officials wanted a rate hike instead. Bond traders sided with them.
Why the 30-Year Treasury Yield Jumped
A bond yield is what lenders charge to hold government debt. When it rises, borrowing gets pricier for everyone.
The Federal Open Market Committee (FOMC) kept its rate range at 3.50% to 3.75%. The vote was 9 to 3.
Beth Hammack, Neel Kashkari and Lorie Logan each wanted a quarter point increase, the Fed statement shows.
Long-term bonds fell hardest. The 30-year yield rose from 5.09% to 5.20%, and the 10-year climbed to 4.67%.
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