On Thursday, the 10-year Treasury yield rose to 5.3338%, marking its highest point since April 2002, while the 30-year yield increased to 5.6702%, the highest since July 2002. These rising yields indicate increasing borrowing costs for mortgages, auto loans, and credit card debt, which could impact consumer spending and economic growth. The 2-year yield also saw a rise to 4.91%.
This trend is not isolated to the U.S.; global yields are climbing as well, with the German 10-year bund reaching 3.6179%, the highest since 2008, and significant increases in yields across other European nations.
The surge in borrowing costs is attributed to investor concerns regarding higher interest rates, escalating government debt, and fiscal spending plans, which could lead to tighter financial conditions worldwide