10-year Treasury yield hits highest level since 2002 as global bond rout gathers pace - CNBC
The 10-year U.S. Treasury yield reached its highest level since 2002, reflecting a broader global trend of rising government borrowing costs. Analysts attribute this to persistent inflation, fiscal deficits, and central bank interest rate hikes.
Why it matters
Rising Treasury yields increase borrowing costs for consumers and businesses, potentially slowing economic growth and impacting global financial stability.
Treasury yields fell on Thursday, giving back some of the recent gains that propelled longer-dated rates to levels not seen in decades.
The 10-year Treasury yield breached a level last seen in April 2002, before easing 5 basis points to 5.243%. The 10-year influences rates on mortgage and auto loans and credit card debt. The yield on the 30-year Treasury bond also hit its highest in 24 years before dropping more than 2 basis points to 5.613%.
Yields and prices move inversely. One basis point equals 0.01%.
Jeff Kilburg, CEO of KKM Financial, said he sees the 10-year yield pulling back to around 4.5%-4.75% if the U.S. and Iran can reach a deal to end the war. "If we're going to continue to stay in Iran, then that's going to be problematic for the 10-year yield."
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