U.S. 30-Year Bond Yield Hits 4.85%, Highest Since November 2023, As Inflation Risks Rise Under Trump

The yield on U.S. 30-year bonds rose four basis points to 4.85%, the highest since November 2023, ahead of $119 billion in government debt issuance this week. The increase in bond yields has heightened concerns about the potential for inflation under the incoming Trump administration, with markets watching proposals for tax cuts and trade tariffs. The 10-year yield climbed 50 basis points since early December, with Treasuries posting only a 0.6% gain for 2024. The Federal Reserve is now expected to implement fewer rate cuts in 2025, and the looming U.S. debt ceiling battle further adds to market uncertainty as the Treasury prepares for accounting maneuvers to avoid breaching it mid-January.