10-year Treasury yield hits 2002 high, raising mortgage and loan costs

The yield on the 10-year Treasury hit the highest level since 2002 during Thursday's trading session as higher borrowing costs impact the economy of large and impact households. Yields on longer-dated Treasurys have risen this year amid the geopolitical uncertainty caused by the Iran war and growing federal budget deficits, tighter monetary policy and more competition in the bond market from mounting levels of corporate debt issuance due to the AI buildout. The 10-year Treasury yield rose as high as 5.34% during Thursday's trading session, the highest level since 2002, before declining later in the day and into Friday. Brian Therien, senior analyst at Edward Jones, told FOX Business that higher Treasury yields "may be a headwind by increasing borrowing costs for households and business," potentially causing interest rate-sensitive areas of the economy like housing and auto sales to slow despite a solid labor market and resilient consumer spending.