Rising Treasury Yields Spark Recession Fears as Fed Battles Inflation

The surge in long-term Treasury yields is making borrowing more expensive, threatening the Fed's plans for a soft economic landing and increasing recession risk.

The 30-year Treasury yield briefly topped 5% as the job market's resilience fuels expectations of further Fed rate hikes.

Higher yields have spooked stock markets, with the Dow and Nasdaq down as investors brace for more aggressive tightening.

Economists warn the bond market moves coupled with deficits and loan payments could trigger a recession.

Despite inflation cooling, Fed officials signal rates will need to stay high though they differ on whether another hike is needed this year.