US 10-Year Treasury Yield Reaches 5.04%, Highest Since 2007

Why it matters locally: The increase in the 10-year Treasury yield could lead to higher borrowing costs for Tennesseans seeking mortgages and for businesses looking to expand or secure loans within the state's diverse economy.

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The effective interest rate on 10-year US government bonds, known as the 10-year Treasury yield, reached 5.04%. This marks the highest level for the yield since 2007. Following this increase, the rate has since decreased. The 10-year Treasury yield serves as a benchmark for various borrowing costs, including mortgages and business loans. An increase in this yield indicates higher borrowing costs for both the government and private entities.