US 10-year yields reach 5%, highest since 2023
- On Monday, the 10-year Treasury yield hit 5%, a critical threshold not seen since 2007, significantly raising borrowing costs for Americans across mortgages and corporate debt markets.
- Large federal deficits, heavy debt issuance, and sticky inflation drive the rising term premium, while uncertainty regarding the war with Iran further complicates the global bond market.
- The average 30-year fixed mortgage rate rose to 6.76% last week, up from 6.15% at the year's start. This marks a stark shift from five years ago, when the 10-year yield traded at 1.3%.
- Treasury Secretary Scott Bessent has sought to contain long-end pressure through expanded buyback programs, though fundamental fiscal and inflation drivers continue pushing yields higher despite these interventions.
- Ten-Year yields in Germany, France, and the United Kingdom have reached levels not seen in over a decade, signaling what Luis Alvarado of Wells Fargo Investment Institute calls a "normal for longer" era.
11 Articles
11 Articles
US 10-Year Yield Breaches 5% as Inflation, Supply Worries Mount
An intensifying selloff in Treasuries pushed the US 10-year yield above 5% for the first time since 2023, as mounting inflation concern collided with swelling government and corporate borrowing needs.
U.S. 10-year Treasury yield touches 5.00%
10-year Treasury yield hits 5%, critical threshold for US economy and markets
The rise in bond yields hit a critical threshold on Monday, with the 10-year Treasury yield rising to 5%, a level briefly touched in 2023 and otherwise not seen since 2007. The move in the key benchmark could mean higher costs for Americans who want to buy a home, finance a car or take out other loans.
US 10-year yields reach 5%, highest since 2023
Benchmark 10-year U.S. Treasury yields climbed above 5% on Monday, the highest level since October 2023 and a closely watched psychological threshold that analysts say could ripple through the U.S. economy and threaten the bull market in stocks by denting the relative appeal of U.S. equities.
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