US 30-year borrowing costs hit 19-year high after Fed holds rates

The Fed held its key rate at 3.5%–3.75% on July 29, 2026, split 9-3 with three officials dissenting for a hike. Investors dumped long-dated Treasuries, sending the 30-year yield to nearly 5.24% — the highest since 2007. Equities fell the next day: S&P 500 -1.5%, Dow -2.2%, Nasdaq -1.7%. The bond market is tightening conditions the Fed chose not to.