US 10-Year Treasury Yield Hits 5.04%, Highest Since 2007, as Bond Selloff Deepens

The benchmark 10-year US Treasury yield surged to 5.04% on Tuesday, September 15, its highest level in nearly two decades and a milestone in a broadening global bond selloff. The yield had briefly touched 5% on Monday before pushing further to 5.041% early Tuesday morning, surpassing a 2023 peak and reaching levels not seen since 2007.

The move is being driven by a combination of surging energy prices, rising Middle East supply risks pushing global oil prices higher, persistent inflation concerns and mounting US government debt. Traders are also positioning ahead of an anticipated Federal Reserve decision, with expectations for the Fed to keep rates elevated reinforcing the upward pressure on yields.

The rise has direct consequences for American consumers and businesses. Higher 10-year yields push up borrowing costs across the economy, including mortgage rates, auto loans and corporate financing. The US government itself faces steeper debt servicing costs as yields climb.