U.S. · Iran · U.S. Treasury · Axios
All this means that the Federal Reserve is now expected to raise its target interest rate this week
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The intrigue: The recent spikes have taken place in spite of interventions by Treasury Secretary Scott Bessent to try to smooth turbulent bond markets, efforts that haven't succeeded in making borrowing cheaper.
Key facts
- The yield on the benchmark 10-year U.S. Treasury note rose to 4.97% Friday, up a full percentage point since the end of February, and only a hair below its high since 2007
- All this means that the Federal Reserve is now expected to raise its target interest rate this week
- Americans are facing a rising tab as a multi-decade borrowing binge collides with a spike in energy prices caused by the Iran war
- The intrigue: The recent spikes have taken place in spite of interventions by Treasury Secretary Scott Bessent to try to smooth turbulent bond markets, efforts that haven't succeeded in making
Summary
Americans are facing a rising tab as a multi-decade borrowing binge collides with a spike in energy prices caused by the Iran war. Long-term interest rates are surging, as are consumer prices. It's a toxic mix of near-term inflation pressures and years of fiscal imbalance. The yield on the benchmark 10-year U.S. Treasury note rose to 4.97% Friday, up a full percentage point since the end of February, and only a hair below its high since 2007. The rate on a 30-year fixed-rate mortgage has risen in lockstep, reaching 7.08% Friday, per Mortgage News Daily, the highest in more than a year.