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Updated on: September 1, 2026 / 4:44 PM EDT
/ CBS News
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Treasury yields edged higher on Tuesday, extending a global bond sell-off and threatening to raise borrowing costs for millions of Americans.The yield on the 10-year Treasury, which influences mortgage rates, rose to 4.78%, up from 4.75% late Monday and the highest level since January 2025. The yield on the 2-year Treasury, which closely tracks expectations for the Federal Reserve's interest rate decisions, rose to 4.37%, up from 4.34% late Monday. The 30-year Treasury hovered around 5.25% on Tuesday. The global rout pushed a key Bloomberg gauge of bond yields to 3.72%, its highest level since June 2008. The sell-off is being driven partly by persistently high inflation and concerns about government debt, prompting investors to demand higher yields to compensate for the added risk."Fiscal concerns, rising energy prices and AI-related investment have lifted long-term government bond yields across major economies to multi-decade highs," James Reilly, a senior markets economist at Capital Economics, said in a research note Tuesday.Here's what to know about the sell-off and what it means for you.Why are bond yields rising?Yields are rising as investors, spooked by inflation and rising government debt, dump their government bonds. Bond yields and prices move in opposite directions, with rising yields signaling that investors are demanding higher returns as investments grow increasingly risky.Investors are also worried about rising energy prices as the U.S. and Iran continue to clash. The U.S. launched its military action against Iran in a month this weekend, causing oil prices to spike. Renewed tensions raised concerns that the war, now in its seventh month, could fuel inflation and prompt the Fed to raise the federal funds rate.
