30Y US Treasury yield hits critical 5%, risking higher rates and inflation concerns.

The 30-year US Treasury yield has reached a crucial resistance level at 5%. A breakout above this level could lead to sharply higher yields, which may have significant macroeconomic impacts. Factors driving this include persistent US fiscal deficits, reduced global demand for Treasuries, and structural pressures pushing real yields higher. Additionally, risks from deglobalization and doubts about Federal Reserve credibility could push inflation expectations above 3%, potentially destabilizing long-term inflation outlooks.