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US 10-year yields reach 5%, highest since 2023

The move reflects bets on higher-for-longer Federal Reserve policy as oil prices rise and mortgage costs climb for households and borrowers.

  • 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.
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The 10-year U.S. Treasury bond yield reached 5% for the first time since 2023. These are the causes and effects.

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Reuters broke the news in London, United Kingdom on Monday, September 14, 2026.
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