Scott Melker, host of The Wolf Of All Streets podcast, reported on X on Thursday, October 8, 2026, that US long-term borrowing costs have returned to levels last observed over two decades ago. Melker stated: "The US Treasury just sold $22 billion in 30-year bonds at a high yield of 5.618%, the highest clearing yield since August 10, 2000. That compares with a high yield of 5.697% at the August 2000 auction. Wednesday’s $39 billion 10-year note auction cleared at 5.300%, the highest since November 2000." He also noted the 30-year bid-to-cover ratio came in at 2.54, down from 2.61 in September, with indirect bidders taking 72.3%.
This rise in long-term yields occurs as investors assess the Federal Reserve's stance on monetary policy. Recent Gokhshtein coverage indicated that Nick Timiraos reported Waller anticipates additional rate hikes, suggesting continued hawkishness from the central bank. Another report highlighted options traders betting on rate cuts, with a surge in bond and utility calls, indicating a divergence in market expectations for future policy.
Melker's observation implies that the cost of government borrowing is significantly increasing, which could impact federal spending and potentially broader economic activity. The high yields suggest that investors are demanding greater compensation for holding long-term US debt, possibly due to inflation concerns or expectations of sustained higher interest rates. This trend warrants close monitoring for its potential effects on corporate borrowing costs and equity valuations.
