Yields on long-dated U.S. government bonds hit their highest since 2007 Tuesday, echoing the sharp rise across the rest of the Treasury curve this week, as investors fret about the prospect of rates remaining higher for longer.

The yield on the 30-year Treasury bond rose by as much as 7.5 basis points on the day to a session peak of 4.871%, its highest since 2007.

Benchmark 10-year yields were up 6 bps on the day at 4.74%, also at their highest since late 2007.

The gap between two-year and 30-year yields rose to -26 bps, its narrowest since mid-May, reflecting how investors are focussing on the chances of rate rises in the near term.