Surging Treasury Yields to 2008 Crisis Levels Threaten Consumers, Banks, Growth

The 10-year Treasury yield, a key borrowing benchmark, has surged to 2008 crisis-era levels, impacting consumers, banks, retailers, and real estate.

The relentless rise defied forecasts and is driven by the Fed's rate hikes and expectations for sustained high rates to combat inflation.

Higher borrowing costs mean consumers and companies will cut back spending, slowing growth and jobs, aimed at reducing demand and inflation.

Regional banks are pressured by falling bond values, potentially spurring more failures like Silicon Valley Bank.

If the 10-year yield tops 5%, it could cause another financial crisis, as debt levels may become unsustainable for the U.S. government.