30-Year Treasury Yield Rises to 5.11%, Highest Since 2007, as Stocks Decline

U.S. 12 percent recorded in June 2007. The surge came as markets reacted to fresh inflation data, elevated oil prices and signs of weak demand for government debt.

Three recent Treasury auctions experienced poor demand, according to @DailyCaller reported. U.S. 575 percent after increasing more than 11 basis points.

U.S. Prices fall when demand for Treasuries is low and yields rise inversely. The Dow Jones Industrial Average was down 403 points.

The NASDAQ was down 75 points and the S&P 500 was down 351 points. A digital screen displayed trading numbers at the New York Stock Exchange after the opening bell on January 2, 2026. The Producer Price Index rose 6 percent on Wednesday prior to May 15, 2026.

8 percent on Tuesday prior to May 15, 2026. Both increases were driven in large part by disruptions to supply chains from the blockade in the Strait of Hormuz. The price of one barrel of Brent crude oil topped $105 on May 15, 2026, due to the closure of the Strait of Hormuz.

The waterway's closure has ripple effects across global energy markets and domestic price measures. U.S. 265 trillion as of the reporting date in May 2026. U.S. 5 percent in September 2025. U.S. 33 for every dollar it collects in revenue. U.S. budget deficits have run consistently at around 6 percent of GDP.

Mandatory spending programs account for approximately 50 percent of federal spending. Future unfunded liabilities could total as much as $193 trillion according to a March 2026 report from Open the Books.

U.S. Labor force participation rate dropped to its lowest level since 1977 in March 2026. U.S. spends more on interest payments on the debt than it does on defense spending. In 2027, mandatory spending on Social Security, Medicare and Medicaid plus interest on the debt is projected to permanently exceed federal tax revenue.

That shift would mean every dollar of discretionary spending would be financed entirely by borrowing. U.S. Treasury bonds.

Paulson warned that as the federal government continues to rack up more debt, investors will demand higher interest rate yields to compensate them for taking on the risk of purchasing Treasury notes as the likelihood that the government can make all its payments on time declines.

This dynamic would cause the interest the federal government pays to finance its debt to rise, making insolvency more likely. " Ryan Meilstrup is Senior Media Editor at the Daily Caller.

The article was published on May 15, 2026 at 1:35 PM ET.