10-Year Treasury Yield Hits 5% for First Time Since 2007, Sparking Concerns Over Rising Borrowing Costs
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The 10-year Treasury yield briefly hit 5% for the first time since 2007, rising over 4 percentage points in just 3 years.
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Higher 10-year yields increase borrowing costs across markets, impacting mortgages, business loans, and government debt.
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The last time yields rose this quickly was in the early 1980s under Fed Chair Paul Volcker when he raised rates to combat inflation.
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Rapidly rising rates preceded a double dip recession in the 1980s.
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Forecasters estimate the 10-year Treasury yield could rise to 6% due to higher government spending and borrowing.