Rising Treasury Yields Signal More Expensive Borrowing and Pressure on Stocks as Rates Climb

The yield on the 10-year Treasury reached 5% for the first time since 2007, indicating rising interest rates.

Higher Treasury yields mean the U.S. government must pay more to borrow and will drive up costs for mortgages, corporate borrowing, and other loans.

Rising yields put downward pressure on prices for stocks, cryptocurrencies, and other investments as safe Treasurys become more attractive.

The Federal Reserve is raising short-term rates to fight inflation, but other factors like government deficits are also pushing Treasury yields higher.

Higher U.S. rates attract foreign investment and strengthen the dollar, adding financial pressure abroad.