30-year Treasury yield tops 5% briefly as traders deal with tariff uncertainty, Fed independence threat

U.S. Treasurys were little changed on Wednesday, but long-dated bonds hovered just below the 5% mark as trade policy, budget deficits and the wider economy continued to weigh on sentiment.

The yield on the 30-year Treasury bond briefly topped the 5% mark overnight before retreating. It was last up slightly to 4.977%. The long-bond yield was last at 5% in July. The yield on the benchmark 10-year Treasury was 1 basis point higher at 4.287%. One basis point equals 0.01% and prices move inversely to yields.

U.S. bond yields spiked on Tuesday as traders reacted to a Friday ruling from the federal appeals court that most of President Donald Trump's new tariffs on imports are illegal. The ruling could force Washington to refund billions of dollars raised from the levies.