Risk-Free Rates Top 5% as Yields Climb — SkimNews
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- Bond market moves over the last few weeks have pushed most risk-free interest rates north of 5%
- The cost of borrowing is described as moving unrelentingly higher, with no reversal flagged
- Savers, borrowers, and the U.S. government face 'profound implications' from the rate shift
- Interest rates are expected to stay elevated barring a rapid reversal in bond markets
Why it matters: Savers finally get a meaningful risk-free return, but every borrower — including the U.S. government — now faces a substantially higher cost of money, with the fiscal outlook explicitly flagged as a casualty of the shift.
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