30-Year Treasury Yield Hits Highest Level Since 2007 as Inflation, Fed Fears Pressure Markets

The 30-year Treasury yield rose 10 basis points to 5.12% on May 15, 2026, its highest level since June 2007, warning equity investors as a global bond sell-off deepened. The 10-year Treasury yield climbed 11 basis points to 4.57%, breaking above 4.5% for its highest level since May 2025. The move followed hotter-than-expected U.S. inflation data. The Consumer Price Index rose 3.8% year over year in April, while the Producer Price Index increased 6%, reinforcing concerns that the Federal Reserve may keep policy restrictive. Oil prices also rose after President Donald Trump left Beijing without a concrete agreement with Chinese President Xi Jinping on ending the Iran war or reopening the Strait of Hormuz. CME FedWatch data showed traders pricing in a near-certain Fed hold at its June meeting and nearly 50% odds of a rate increase by year-end. Japan’s 30-year yield hit 4%, while the U.K. 10-year gilt yield reached 5.14%.