The yield on the 10-year U.S. Treasury climbed to 4.943% on Thursday, up from 4.836% on Wednesday, making this its highest close since October 2023, putting it within striking distance of the 5% threshold for only the second time since the 2008-09 financial crisis.
The increase comes amid rising oil prices, a firm wholesale inflation report, and President Donald Trump‘s pledge to send $5,000 checks to Americans if Republicans retain Congress, a promise that could add more than $1 trillion to the federal deficit.
Why It Matters
The 10-year yield influences borrowing costs across the economy, including mortgages, student loans and corporate debt. As it rises, loans become more expensive for homebuyers, students and businesses alike, which can slow spending.
The average 30-year fixed mortgage rate jumped to 7.07% Thursday, Mortgage News Daily reported. Separately, Freddie Mac’s weekly Primary Mortgage Market Survey put the 30-year fixed rate at 6.76%, up from 6.71% the prior week.
