The 10-year U.S. Treasury yield hit 5.21% on Friday, its highest level since 2007, while the average 30-year mortgage rate jumped to 7.45%. The Federal Reserve raised rates for the first time since 2023, with markets pricing in roughly 70% odds of another hike in October. Economists are divided: optimists say the rise reflects a robust U.S. economy driven by AI, with major hyperscalers set to invest nearly $800 billion in capital this year; pessimists argue the term premium is climbing due to risks beyond the Fed’s control, particularly the U.S. deficit and the war with Iran.
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