US 30-year Treasury yields hit 24-year high as consumer spending stays strong

US long-bond yields hit a fresh 24-year high on Wednesday, with 30-year Treasury yields rising to 5.63%, the highest since 2002, driven by resilient US consumer spending and heavy corporate debt supply. The yield surge followed data showing August consumer spending grew at its fastest pace in over a year, reinforcing expectations the economy can withstand higher interest rates. The Fed's preferred inflation gauge rose 0.3% monthly, though core prices increased less than forecast, prompting traders to trim October rate-hike odds to about 36%. The move extends a global bond selloff that has pushed a Bloomberg index of government debt down 2.1% since June, the steepest decline since late 2024. Treasury buybacks under Secretary Scott Bessent have offered limited relief, with analysts suggesting a negative growth catalyst may be needed for sustained improvement.