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  • 20-Year Treasury Yield Spikes to 5.13%. Yield Curve Gets Ready to Uninvert. Juicy Yields Tempt, but Bloodbath May Not Be Over

20-Year Treasury Yield Spikes to 5.13%. Yield Curve Gets Ready to Uninvert. Juicy Yields Tempt, but Bloodbath May Not Be Over

October 04, 2023

by Wolf Richter Wolf Street

“Fed hikes till something breaks.” But honey, the biggest thing has already broken: price stability. The Fed is trying to fix it.

The unloved 20-year Treasury yield – “unloved” because it has been higher than the 30-year yield ever since the 20-year Treasury security was introduced in May 2020 – spiked 13 basis points today, after rising 8 basis points yesterday, to close at 5.13%, making it the first of the long-term yields to blow over the 5% line.

Over the past two weeks, the 20-year yield has spiked by 56 basis points. When bond yields rise, bond prices fall, and so this has been a bloodbath for existing bond holders.