U.S. 30-Year Treasury Yield Tops 5% as Moody’s Downgrade Sparks Fiscal Alarm Bells
The 30-year Treasury yield punched through the 5% psychological barrier—a level not seen since the pre-Covid era—as Moody’s credit rating downgrade amplified concerns about Washington’s runaway deficits. Bond vigilantes are back, and they’re wielding spreadsheets instead of pitchforks.
This yield surge signals a brutal repricing of long-term inflation expectations, with traders now demanding higher premiums to hold duration risk. Meanwhile, the dollar’s reserve currency status faces its sternest test since the 1970s as BRICS nations accelerate de-dollarization efforts.
Funny how ’risk-free’ assets now carry more volatility than Bitcoin.