The 30-year Treasury bond yield reached 5.718% by the first week of October. Just days earlier, it hit an intraday high of 5.693%, a level the market has not recorded since 2002. The 10-year Treasury also crossed the 5.3% threshold for the first time in 24 years, recently climbing to 5.346%. Shorter-duration bonds are also elevated, with the two-year Treasury yielding 4.821% and the five-year hitting 5.082%.
These numbers dictate the cost of capital across the economy. When bond prices fall, yields rise, making borrowing more expensive. Mortgage rates for standard 30-year home loans have climbed back above 7%, marking multiyear highs. The interest rates attached to auto loans and credit cards are moving higher in parallel.
