Why Treasury Yields Matter for Your Finances

By: Anneken Tappe · October 23, 2023 · Reading Time: 2 minutes

16-Year High

Treasury yields have been on the rise, with the 10-year U.S. yield touching 5% for the first time since 2007. That’s weighing on stocks, and creating uproar in the market. But there are more reasons why you should care about this.

Elevated Rates

There are a few reasons behind the rise of Treasury yields: For one, there’s the Federal Reserve’s stance that interest rates will likely stay higher for longer. Add to this persistent economic growth, high inflation, and a bunch of newly-issued government debt that’s weighing on prices. And when bond prices go down, yields go up.

Paying More Interest

For Americans, a higher 10-year Treasury yield may mean more expensive credit terms for things like car loans, credit cards, student debt, and mortgages. For example, the average 30-year fixed rate mortgage sits at its highest in more than two decades, nearing 8%.

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