US Long-Term Yields at 19-Year High: Bruegel Analysis Points to Structural Drivers

Long-term US government bond yields have reached levels not seen in 19 years, according to a new Bruegel analysis. The think tank suggests structural factors—such as increased term premium, fiscal deficits, and reduced foreign demand—may be driving yields higher, rather than just cyclical monetary policy. This matters because sustained high yields could tighten financial conditions globally and pressure equity valuations.