As 10-year Treasury yield hits 5%, debt hawks are eyeing a national debt spiral: 'If this isn't a wake-up call, I don't know what will be'

A view of a bus shelter at 13th and I St's NW where an electronic billboard and a poster display the current U.S. National debt per person and as a nation at 40 Trillion Dollars on August 30, 2026 in Washington, DC. (Credit: Jemal Countess - Getty Images for the Peter G. Peterson Foundation)

Budget watchdogs have been given fresh cause for concern this week as the rate on 10-year Treasuries has tipped over 5%—a symbolic benchmark for investors and economists.

At the time of writing, yields on the 10-year note sat at 5.027%, having climbed steadily since February of this year.

The 52-week high came after the U.S. Treasury intervened in the bond market, with a multi-billion-dollar buyback scheme last month in an attempt to improve market liquidity.

But after a brief drop, yields resumed their march higher ahead of this week’s Federal Open Market Committee (FOMC) meeting, and ongoing tensions in the Middle East contributing to inflationary fears.