The yield on the 30-year US Treasury bond pulled back after surging to its highest level in 19 years amid concerns about the US fiscal position and persistently elevated inflation. As of 10:53 p.m. Thailand time, the 30-year Treasury yield stood at 5.296 percent after earlier breaking above 5.33 percent, while the 10-year Treasury yield was at 4.714 percent. The US budget deficit jumped to 432.3 billion dollars in July, the largest monthly shortfall since March 2021, pushing the cumulative deficit since the start of the year to nearly 1.8 trillion dollars. The US government has spent around 1.2 trillion dollars on interest costs this year to service a public debt of nearly 40 trillion dollars. Investors are also watching the situation in the Middle East, where President Donald Trump posted on Truth Social that the United States is not negotiating with Iran and that the Strait of Hormuz remains open to normal shipping, while the US naval blockade remains fully in force. Mohammad Bagher Ghalibaf, speaker of Iran's parliament and head of the negotiating team, said the Strait of Hormuz will remain closed until the United States lifts its naval blockade, removes sanctions on Iranian oil, and unfreezes Iranian assets abroad.
Fiscal deficit and inflation concerns push yields up, but the article reports a pullback after hitting a high; for the yield itself, the easing is negative.
30-year yield eases after hitting 19-year high, so the yield declines.
