Treasury Yields Top 5% for First Time Since 2007, Signaling Higher Borrowing Costs and Pressures for Consumers and Markets

The yield on the 10-year Treasury reached 5% for the first time since 2007, indicating higher borrowing costs for the U.S. government.

Higher Treasury yields lead to higher interest rates for mortgages, corporate bonds, and other loans, putting pressure on consumers and businesses.

Rising yields are a result of the Federal Reserve raising rates to fight high inflation, as well as strong economic data.

Higher yields often lead to falling prices for stocks, crypto, and other assets considered riskier than bonds.

The higher yields have strengthened the U.S. dollar against other currencies like the euro and pound, adding financial pressure abroad.