US long‑term Treasury yields rose above 5% on August 20, 2026, the highest level since 2007, as reported by market data. The 30‑year Treasury yield, a benchmark for global borrowing costs, increased amid inflation expectations and heightened uncertainty about the Trump administration’s economic policies and the Iran war. Treasury Secretary Scott Bessent announced that the administration would double its purchases of long‑term US bonds and, together with Tokyo, intervene to support the Japanese yen, actions that temporarily reduced yields before they rose again, according to statements released on Wednesday. Analysts said the sell‑off reflects concerns that the US national debt, which reached $40 trillion, may be unsustainable given the administration’s tax and spending plans, as well as rising oil prices linked to the Iran conflict. Heavy borrowing by technology firms to fund data‑center expansion has also contributed to market pressure. Higher yields are expected to raise borrowing costs for mortgages, consumer loans and corporate bonds, potentially dampening consumer spending and economic growth. Some experts warn that a feedback loop could emerge, with elevated debt‑service costs limiting fiscal capacity for growth‑enhancing measures and reinforcing higher deficits. The outlook will depend on developments in the Iran war, possible policy shifts by the Trump administration, and actions taken by major central banks.