Yields on 10- and 30-year US bonds hit a 24-year high — The Hill

In the United States, yields on 10-year and 30-year Treasury bonds reached their highest levels in 24 years during early trading on Wednesday. The yield on 10-year securities exceeded 5.36%, while that on 30-year securities topped 5.73%. As The Hill reports, both indicators were last at such levels in April 2002.

Indicators retreated somewhat from their highs

By noon, bond yields had declined slightly: 10-year securities were trading below 5.32%, while 30-year securities were below 5.69%. At the same time, both indicators remained about four basis points higher than Tuesday’s closing levels.

In April 2002, the yield on 10-year bonds reached a peak closing level of 5.48%. At the time, the stock market fell sharply after a recession that had lasted several months.

More current news is available on the UA.News Telegram channel Telegram.

Rising yields in Europe

Bond yields are also rising in European countries. Investors are leaving the market amid growing government debt and high oil prices linked to the war in Iran and Russia’s aggression against Ukraine. Mohamed El-Erian, who chaired the Global Development Council under President Barack Obama, wrote on social media on Wednesday that the yield on France’s 10-year bonds is leading the regional increase, which increasingly reflects a two-way dynamic with US Treasury securities.

Impact on lending

Last month, the Federal Reserve raised its rate by a quarter of a percentage point for the first time since July 2023, bringing the target range for the federal funds rate to 3.75–4%, as inflation remains above the 2% target. Higher interest rates often raise bond yields, whose prices move in the opposite direction.

Rising yields mean higher borrowing costs for Americans, including mortgages. The average rate on a 30-year mortgage, which closely correlates with the yield on 10-year bonds, stood at 7.52% on Wednesday, the highest level since November 2023, according to Bankrate.