30-Year Treasury Yields Hit 5.30% as S&P 500 Holds Near Record Highs
Updated
Updated · Financial Times · Aug 26
30-Year Treasury Yields Hit 5.30% as S&P 500 Holds Near Record Highs
3 articles · Updated · Financial Times · Aug 26
Summary
30-year Treasury yields have climbed above 5.30%—a 19-year high—while the S&P 500 remains just below record highs, a pairing that looks less contradictory in a supply-constrained economy.
BlackRock argues investors are misreading markets through a demand-driven Great Moderation framework even as labor shortages, energy security, rewired supply chains and heavy state spending reshape growth and inflation.
That shift means slower growth no longer guarantees lower inflation, limiting central banks’ ability to ease and weakening the old pattern in which bonds rallied when equities came under pressure.
10-year Treasury yields near 4.70% also reflect a structurally higher cost of capital, pushed up by the AI investment boom, rising government borrowing, deficit concerns and uncertainty over the Fed’s response to recurring supply-driven inflation.
Under that view, equities can stay elevated if higher borrowing costs come with stronger productivity and earnings expectations, while bonds offer income but less of the portfolio ballast they provided before 2020.