Money
US 10-Year Treasury Yield Hits 5.34% in Global Bond Sell-Off
The yield on the US 10-year Treasury bond jumped to 5.34% this week, a multi-decade high, as investors worldwide sold government bonds and pushed up borrowing costs from Washington to Paris.
5.34%US 10-year Treasury yield
The facts
- 1The US 10-year Treasury yield climbed to 5.34%, its highest level in decades, after a sharp global bond sell-off.
- 2A bond yield is the return investors earn for lending money to a government; when bond prices fall, yields rise.
- 3The sell-off also pushed French and other European long-term government borrowing costs to multi-decade highs.
- 4Higher yields raise costs for governments issuing new debt and can push up mortgage, auto loan, and credit card rates.
- 5Some investors bought bonds at the higher yields, which helped steady prices, but analysts warn volatility may persist.
Why it matters
When government borrowing costs rise this sharply, it can ripple into household loans and slow spending, even for people who never buy a bond directly.
Sources
- Mint
- U.S. Department of the Treasury
- Federal Reserve
