Treasury yields have surged significantly, with the 10-year note hitting 5.125%, a level not seen since before the global financial crisis. This jump is driven by multiple factors: higher-than-expected inflation, expectations of another Fed rate hike in October, and weak demand at a 5-year note auction. For consumers, these increases translate into 30-year mortgage rates at 7.26%, while savings accounts yield barely 0.37%. Small and medium-sized businesses are the most vulnerable, with increasingly restricted access to credit, threatening economic growth estimated at 5.1% in the third quarter.
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