Debt is getting more expensive again

U.S. 30-Year Borrowing Costs Hit a 25-Year High.

The U.S. Treasury sold $25 billion of 30-year bonds at a yield of 5.216% on Thursday. That’s the highest yield at a 30-year Treasury auction since 2001.

Eventually, stuff like this does matter.

The 30-year U.S. Treasury yield just hit its highest level in nearly two decades.

• Nearly $2T annual deficits.

• Debt approaching $40T.

• Heavy Treasury issuance.

• Sticky inflation.

• AI-driven corporate borrowing.

Markets can ignore fiscal arithmetic for a while. The bond market eventually sends the bill. And guess what, equity markets usually follow.

Sources: Bloomberg, US Treasury, Valérie Noël