Long-term US borrowing costs reach 19-year high after Fed holds rates

The Fed held its key rate at 3.5%–3.75% on July 29, 2026, splitting 9-3 as three officials pushed for a hike. Investors sold long-dated Treasuries, pushing the 30-year yield to near 5.24% — the highest since 2007. Stocks fell the next day: S&P 500 -1.5%, Dow -2.2%, Nasdaq -1.7%. Bond markets are tightening conditions the Fed declined to.