Long-term borrowing rates are hitting multi-decade highs as U.S. debt nears $40 trillion and AI hyperscale companies ramp up bond issuance.
By James Van Straten|Edited by Stephen Alpher20 min ago2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on US 30 Year Treasury Yield (TradingView)SummaryShow- The yield on 30-year U.S. Treasuries has risen to 5.33%, marking its highest point in nearly two decades.
- Increased bond returns could divert investments away from risk assets, although gold's recent gains indicate that investors are also seeking protection against declining government credibility.
Long-term government bond yields are escalating to levels not witnessed in many years, driven by substantial debt issuance and heightened worries regarding government finances as the U.S. debt nears $40 trillion.
The relationship between bond prices and yields is inverse; as investors sell bonds, yields rise. Currently, the 30-year U.S. Treasury yield stands at 5.33%, its peak since 2007, while U.K. gilt yields are nearing 6%. France's borrowing costs are at their highest since 2008, and Japan's long-term yields are consistently setting new records.
The TLT exchange-traded fund, which tracks long-duration U.S. Treasuries, dropped to a historic low of $81.35 on Monday.
Concerns surrounding oil persist, with West Texas Intermediate crude trading above $84 per barrel, a 25% increase from its July low, maintaining levels over $70 since the onset of the war in February. However, inflation expectations for five and ten years have remained relatively steady this past week, at 2.25% and 2.28%, respectively, indicating that inflation isn't currently the market's foremost worry.
5 and 10 year inflation expectation (TradingView)As attention shifts towards debt supply and refinancing risks associated with the AI infrastructure expansion, hyperscale companies have collectively issued $159 billion in bonds in 2026, a 47% increase from the previous year, primarily to fund AI infrastructure. Goldman Sachs anticipates that total bond issuance will reach $400 billion this year, with each basis point increase raising refinancing costs for that debt.
The pessimistic outlook for cryptocurrencies and risk assets suggests that rising yields could attract capital away from more speculative investments. CNBC's Jim Cramer remarked, “5.31% isn’t that bad for 20-year paper.”
Typically, as bond yields rise, assets like gold and bitcoin, which do not produce yield, become less appealing. Despite this, gold has surged by 10% this month, hinting that investors may perceive the bond selloff as a sign of diminishing confidence in sovereign fiscal reliability.
Bitcoin was expected to embody this hedge narrative but has struggled to do so, underperforming for nine months and currently languishing in a low-volatility phase just above $64,000.
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Building the Zcash Machine: Tachyon and Quantum Readiness
Building the Zcash Machine: Tachyon and Quantum Readiness
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
By CoinDesk ResearchJun 30, 2026Commissioned byGenZcashZcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Why it matters:
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
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