US 30-year Treasury yield tops 5.36 percent

The yield on the 30-year U.S. Treasury bond closed above 5.36 percent on Thursday. This marks the highest closing level since April 2002. The 10-year note finished at 4.96 percent, its strongest position since 2007.

These gains followed President Donald Trump’s pledge to distribute a $5,000 dividend to every adult citizen. The proposal targets approximately 270 million Americans. The total cost would exceed $1.3 trillion.

Fiscal costs exceed annual interest

The estimated $1.3 trillion price tag surpasses the interest paid on the national debt this fiscal year. U.S. government debt crossed the $40 trillion mark last month. This threshold was reached less than a decade after the $20 trillion level was set.

Vice President JD Vance stated that tariff revenue would fund the payouts. The Treasury Department reports $154 billion in tariff income so far this year. This amount falls short of the total dividend cost.

Political resistance to spending

Several Republican lawmakers criticized the proposal as fiscally irresponsible. Former Representative Bob Good argued the president lacks constitutional authority to issue such payments without Congress. He noted that spending power rests with the legislature.

Critics warn the move could accelerate inflation. Inflation rates remain above the Federal Reserve’s 2 percent target. Persistent price pressures have already contributed to rising bond yields globally.

Market drivers remain structural

GN auto markets/bonds: treasury yields reports indicate that mounting public debt is a primary driver of higher rates. The 10-year and 30-year notes have set new multi-year highs in recent weeks. Market participants price in the risk of sustained fiscal expansion.

The 30-year yield rose by more than 8 basis points on Thursday. The 10-year yield increased by approximately 1.3 basis points. These movements reflect investor concerns over long-term debt sustainability.