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US 10-year Treasury yield tops 5 percent, a level last seen in 2023

SRN News, citing Reuters, says the US 10-year Treasury yield was last up 3.51 basis points at 5.01 percent on Monday, the highest since October 2023. CNN Business says the same yield rose to 5 percent, a level briefly touched in 2023 and otherwise not seen since 2007. Both reports say the move can raise costs for mortgages and other loans.

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5.01 percent on the Reuters print

The benchmark US 10-year Treasury yield was last up 3.51 basis points at 5.01 percent on Monday. Reuters said that was the highest since October 2023, a threshold analysts said could affect the relative appeal of US equities. Yields rose as traders priced the possibility that the Federal Reserve would need to keep rates higher for longer after a jump in oil prices revived inflation fears. Reuters said heavy debt issuance, including by companies financing record AI-related spending, added to bond supply, and that some investors argue widening US deficits require a higher yield premium. The report said the 10-year yield feeds through to mortgages, consumer loans and corporate borrowing.[1]

CNN's 5 percent and the 2007 comparison

CNN Business says the 10-year Treasury yield rose to 5 percent on Monday, a level briefly touched in 2023 and otherwise not seen since 2007. The 14 September report, timed at 10.21 a.m. ET, says the move can raise costs for home, car and other loans. Yields have climbed despite Treasury Secretary Scott Bessent's efforts to quell bond-market concerns. Yields rise when bond prices fall; CNN says the sell-off has pushed the 10-year toward levels not seen in nearly two decades.[2]

5.01 percent is not the same sentence as 5 percent

SRN's Reuters print is 5.01 percent and the highest since October 2023. CNN's sentence is 5 percent, with 2023 as a brief prior touch and 2007 as the longer comparison. Neither report publishes a close. Both say household and company borrowing costs sit downstream of the 10-year. They do not say the Federal Reserve has already decided its next move.[1], [2]

References

  1. News sourceSRN News / ReutersUS 10-year Treasury yield climbs above 5 per cent, highest since 2023↩1↩2
  2. News sourceCNNThe US 10-year Treasury yield hit 5 percent, a threshold last seen in 2023↩1↩2
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