30-Year Treasury Yield Hits Highest Since 2007; August US Investment-Grade Bond Issuance Sets Record for the Month

On Monday, the 30-year Treasury yield briefly rose above 5.31%. Corporations have issued debt on a massive scale to support the AI boom, exacerbating supply-demand imbalances in the long-duration bond market. August US investment-grade bond issuance has reached $145.2 billion, surpassing the monthly record of $136 billion set in August 2020. Meanwhile, the US government's nearly $2 trillion annual fiscal deficit continues to boost Treasury supply.