Demand for longer-term U.S. debt gets weaker as one shock after another stokes fear that high inflation is here to stay

The demand for longer-term U.S. debt is declining as investors react to ongoing inflation concerns exacerbated by the energy crisis. Recent U.S. debt auctions indicate weak interest in Treasuries, with a notable sale of 30-year bonds yielding 5% for the first time since 2007. This shift comes amid rising oil prices and disappointing economic data, suggesting that high inflation may persist.