- The 10-year Treasury yield climbed above 5.1% on Wednesday, a level not seen in nearly two decades, extending a sell-off driven by surging government debt, oil price spikes tied to Middle East conflict, and competition for borrowing from AI firms building data centers.
- Investors grew more convinced the Federal Reserve will raise interest rates again, pushing the benchmark yield to around 5.1%.
- Average 30-year fixed-rate mortgages sit near 7% and borrowing costs face further increases, with analysts saying rising mortgage rates on top of other factors are depressing home sales.
Quotes
“The 10-year Treasury yield on Wednesday rose to around 5.1 percent, as investors grew more convinced the Fed Reserve will raise interest rates again.”
“As home buyers face average 30-year fixed-rate mortgages near 7 percent, borrowing costs may rise even higher.”