Barclays Says Long-Term US Treasury Yields May Stay Near Multi-Decade Highs

Barclays said long-term US Treasury yields could remain near multi-decade highs as the market grows more dependent on price-sensitive private investors, according to Walter Bloomberg on August 11.

Private investors now hold about 73% of US Treasuries, up from about 50% a decade ago, Barclays said. With demand from the Federal Reserve and foreign central banks declining, persistent inflation and fiscal deficits are increasing Treasury supply and prompting investors to demand higher yields.

The 30-year US Treasury yield recently approached 5.28%.