Fixed-income investors keep demanding a higher premium to hold U.S. government debt.

The 10-year Treasury yield rose as high as 4.80% Tuesday morning, up from Monday’s 4.75% close and the highest since January 2025. The 30-year sits at 5.25%.

iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) touched a one-year low of $92.18. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) traded at $82.02, down 0.6%.

The Treasury Department responded on Aug. 19, at least doubling its long-dated bond buybacks to $4 billion per operation. Buying bonds back lifts their price and pulls yields down.

Yet, market forces seem to continue prevailing in pushing yields higher.

Inflation is still above the Federal Reserve’s 2% target and a deficit that keeps widening. Total federal debt passed $40 trillion last month.

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