US 30-Year Treasury Yield Hits 5.6%, Highest Since 2004
The yield on 30-year US Treasury bonds reached 5.6 percent on Tuesday, its highest level since 2004, amid rising inflation concerns driven by higher oil prices and expectations of a US interest rate hike. The yield increase was fueled by inflation worries stemming from rising oil prices due to the American war on Iran, alongside investor sell-offs in the bond market, where falling bond prices typically push yields higher. Oil prices are volatile amid US-Iran tensions and supply disruption fears in the Strait of Hormuz and Bab el-Mandeb. The US and Israel launched a war on Iran in February 2026, followed by a ceasefire in April, but recent US strikes on Iran have resumed amid stalled negotiations over navigation in the Strait of Hormuz.