10-Year Treasury Yield Hits 5% as Trump Bond Buybacks Fail — SkimNews
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- 10-year Treasury yield briefly hit 5% Monday before settling at 4.98%, its highest close in three years; the yield hadn't reached that level since 2007, the year before the global financial crisis, except for a brief October 2023 spike.
- Trump administration attempts to ease rates — including aggressive buybacks of billions in Treasury bonds — failed to placate investors, who pushed yields past the 5% threshold.
- Oil prices above $100 a barrel amid the Middle East war drove inflation fears, alongside concerns about out-of-control government spending and an explosion of AI-driven borrowing.
- 30-year fixed mortgage rate climbed to 6.76% last week, up from roughly 6% in late February before the start of the war in Iran.
- Trump's proposed $5,000 payment to every American if Republicans retain Congress could add $1 trillion to the federal deficit.
Why it matters: Borrowers face the most concrete pain: the average 30-year fixed mortgage rate hit 6.76% last week, up from roughly 6% before the Iran war began in late February. The Trump administration's aggressive bond buybacks — designed to ease yields — failed to move skeptical investors, leaving companies and consumers absorbing higher borrowing costs.
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