US Treasury yields hit 24-year high, raising mortgage and borrowing costs for households

US 30-year Treasury yields hit 5.48% on Thursday, their highest level since 2004, while the 10-year yield reached 5.20%, reflecting a major repricing of US government debt costs. The rise stems from multiple factors, including higher energy prices, firm economic growth, expectations for Federal Reserve interest rates, and heavy government borrowing. Investors demand greater compensation for holding long-term debt amid renewed inflation pressures and resilient growth. Higher Treasury yields directly impact households through mortgage rates, which have reached about 7%, and can raise borrowing costs across the financial system. Businesses are becoming cautious, with some reporting higher input costs and uneven consumer spending.