10-year Treasury yield hits highest level since 2002 as global bond rout gathers pace — SkimNews
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- 10-year Treasury yield rose 4 basis points to 5.3338%, breaching a level last seen in April 2002, per LSEG data — a benchmark for U.S. mortgage, auto, and credit card rates
- 30-year Treasury bond yield jumped 3 basis points to 5.6702%, its highest since July 2002, while the 2-year yield climbed 2 basis points to 4.91%
- Institute of International Finance warned major economies face "persistently large deficits and rising interest expenses — challenges long associated with debt-distressed emerging market sovereigns"
- Japan's 10-year yield reached 3.126%, the highest in three decades, pressured by a weaker yen and Bank of Japan rate hikes
- European yields spiked alongside: the German 10-year bund gained 4 bps to 3.6179% (highest since 2008), the French 10-year jumped 11 bps to 4.9501%, Italy's 10-year rose 10 bps to 4.7171%, and the U.K.'s 10-year climbed 5 bps to 5.483%
Why it matters: The 10-year Treasury yield at 5.3338% directly resets the pricing floor for U.S. mortgages, auto loans, and credit card debt — meaning American households will pay more to borrow. Simultaneously, with 30-year yields at 5.6702% and the IIF warning that rich-country deficits now mirror "debt-distressed emerging markets," governments themselves face compounding interest expenses that deepen the very deficits spooking bond markets.
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