Stephen Laipply and Ian Shepherdson highlight rising 30-year Treasury yields driven by high U.S. debt and tech competition.

Stephen Laipply, global co-head of Bond ETFs at Blackrock, notes that 30-year Treasury bonds have maintained yields above 5% for the longest stretch since 2007. This trend reflects investor demand for higher compensation to offset the risk of locking capital away for three decades. Ian Shepherdson, chairman of Pantheon Macroeconomics, attributes these rising yields to the "intractability" of the large budget deficit the U.S. has maintained for some time. With government debt reaching 100% of GDP in March, investors are increasingly concerned about the long-term viability of repayment. Furthermore, Stephen Laipply observes that the bond market faces new competition from a "large issuance boom" in AI infrastructure. Tech companies are offering high-paying, long-term bonds that provide viable alternatives to government debt. Leslie Falconio, head of fixed income strategy at UBS Wealth Management, notes that pension funds and insurance companies are actively seeking these high yields. These factors combined suggest that markets are becoming uncomfortable with current debt levels, forcing investors to demand more for long-term commitments.

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