30-Year Treasury Yield Crosses 5% for First Time Since 2007 as Stocks Hit All-Time Highs

According to Bloomberg, the 30-year Treasury yield crossed 5% on Friday morning for the first time since 2007 after two inflation reports this week pushed long-dated bond yields higher. The 10-year Treasury yield stood at 4.54%, while the 30-year reached 5.09%.

Meanwhile, the S&P 500 hit new all-time highs this week, on track for a seventh straight week of gains. The stock market divergence reflects investors' belief that government fiscal spending will offset risks like the Iran war energy shock, despite bond investors pricing in higher inflation. AI optimism also drove gains, with chipmaker Cerebras Systems surging 68% after its listing.