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Treasury Yields Hit 5.3% as Bonds Rally Fails

8/22/2026

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Story summary
  • U.S. Treasury yields rose above 5.3%, the highest level since 2007.
  • German Bund yields reached levels not seen since the 2011 Eurozone crisis.
  • UK bonds delivered the most generous returns in almost 30 years.
  • AI hyperscalers are tapping the finite pool of global capital, adding borrowing pressure.
  • The classic 60/40 equity-bond mix underperforms amid persistent inflation and fiscal deterioration.