10-year Treasury yield hits 22-year high, raising loan rates
The 10-year U. S. Treasury yield rose to 5. 34%, its highest level in 22 years, pushing up rates on mortgages, credit cards and other consumer loans. Market data showed the increase came as investors priced in higher inflation expectations and the prospect of further Federal Reserve rate hikes. Earlier in the two-week period, the yield had climbed to 5.
20%, its strongest in two decades, then to 5. 25%, the highest since 2007, as strong consumer spending and a robust job market lifted expectations. The 30-year Treasury yield also hit 5. 613%, its highest since 2002, while average 30-year mortgage rates rose to 7. 6%, the highest since late 2023. Yields later held steady ahead of the September jobs report, with markets pricing a high probability that the Fed would keep rates unchanged in October.
