Bond vigilantes return: 30-year yield tops 5.33% as US debt nears $40T
The 30-year Treasury yield hit 5.33%, a 19-year high, with the 10-year pushing toward 4.75% and "bond vigilante" talk resurfacing. The culprit is fiscal: a $432B July deficit, near-$40T debt, and ~$1.37T in annual interest costs. But the pain is uneven: long-duration funds like TLT and VGLT are absorbing the hit, while short-duration Treasurys barely moved. Duration decides who feels the $40T debt story.