US long-term government borrowing costs rose to their highest level in more than two decades on Thursday as a global bond selloff deepened. Reuters reported that the 30-year Treasury yield touched 5.458%, the highest level since 2004.
The benchmark 10-year Treasury yield also reached about 5.14% after recently touching a 19-year high. Rising yields generally mean bond prices are falling and borrowing costs are increasing for governments, companies and consumers.
Reuters said investors are increasingly concerned that high energy prices, resilient US economic activity and elevated government spending could keep inflation stronger for longer. Recent business-activity data also reinforced expectations that the Federal Reserve may raise interest rates again.
US 30-year mortgage rates are now around 7%, roughly a percentage point higher than before the latest Middle East conflict. Higher borrowing costs could put additional pressure on housing, corporate investment and global financial markets.