US Bond Yields Hit Two-Decade High Amid Inflation Fears

The US benchmark bond yield has reached its highest level in over two decades, reaching 5.34 percent on Thursday.

This significant increase is attributed to investors selling government debt due to expectations of rising crude oil prices, which could lead to stubbornly high inflation and prompt the Federal Reserve to hike interest rates again.

Additionally, growing unease about the US fiscal outlook has contributed to the surge in bond yields.

The impact on mortgage costs is already being felt, with Freddie Mac reporting that the average 30-year fixed-rate mortgage climbed to 7.28 percent in the week through September 30, the highest since November 2023.