The US 10-year Treasury yield surged above 5% on Monday, September 14, 2026, marking its highest point since 2007. This increase reflects intensifying worries about inflation and growing borrowing needs from both the government and corporations. The yield briefly touched 5.01%, a level last seen for a single day in October 2023.
This significant rise in the 10-year Treasury yield has pushed up borrowing costs across the board for consumers, businesses, and the US government. It impacts the cost of mortgages, car loans, and various other forms of credit. The move occurred despite efforts by Treasury Secretary Scott Bessent to calm the bond market.
The global bond market, particularly the nearly $32 trillion US Treasury market, is experiencing a sell-off. Investors are grappling with several factors, including soaring energy prices, the anticipation of central banks raising interest rates, and broader economic uncertainties. Traders are pricing in an almost 89% chance that the Federal Reserve will implement a 25 basis point rate hike this week, which would be its first increase since 2023. Additionally, the yield on 30-year Treasury bonds climbed to 5.36%, nearing highs last observed in 2004.
