As the US 30-year Treasury yield surpasses 5%, bond traders increase their bearish bets.

Due to concerns about the inflation risk caused by tariffs and the increase in government spending in some of the world's major economies, the US Treasury market is rife with bearish sentiment. The latest survey by J.P. Morgan for US Treasury clients shows that investors' net long positions have dropped to their lowest level in six weeks. At the same time, the US government faces selling pressure; after June consumer price data failed to alleviate concerns about the impact of trade tariffs, selling pressure on US Treasuries rose on Tuesday. As a result, investors have reduced their bets on the Federal Reserve cutting interest rates as early as September. The 30-year US Treasury yield has crossed 5% for the first time since early June, with approximately $10 million in large options bets that the yield will rise to around 5.3% within about five weeks. Since 2007, the yield on this long bond has never reached such a high level.