30-Year Treasury yield spikes to 5.31%, highest since 2007, as term premium rises

The 30-year yield hit 5.31%, the highest since June 2007, despite near-term rate hike expectations easing. This suggests investors are pricing in higher term premiums due to deficit concerns and long-term inflation uncertainty. The move creates a disconnect with short-term yields and is a key market reaction to Fed policy expectations. Citadel Securities' note reinforces this, criticizing the Fed's 'easier route' and warning that the policy stance keeps yields high. Ties directly to bond market volatility and Fed credibility.