U.S. Treasury yields reach highest levels in years amid global bond selloff

U.S. government bond yields have climbed to their highest levels in nearly two decades. The 10-year Treasury yield reached around 5.2%, a level not seen since 2007. The 30-year yield rose even further, hitting 5.5%, its highest point since 2004.

Yields have risen because investors expect the Federal Reserve to keep raising interest rates to bring down inflation. Strong economic data has also pushed yields higher. A key measure of business activity recently hit its best level in over four years. Federal Reserve Governor Michael Barr suggested that further rate increases may be needed.

Higher yields make borrowing more expensive for ordinary people. Mortgage costs and business loans both rise when Treasury yields go up. Bond markets in Japan, the UK, and Europe have also fallen.