30-year Treasury yield climbs 6 basis points to 5.27%
The 30-year Treasury yield rose 6 basis points to 5.27% on Friday, its highest since 2007. This increase is part of a broader trend, with the 30-year yield rising 34 basis points, or 0.34 percentage points, since June.
The Fed has held its overnight rate target at 3.5% to 3.75% throughout 2026, but markets have driven up longer-term rates. The 10-year yield has gained 24 basis points, while the 2-year yield is up about 10 basis points.
This market-driven increase in rates has tightened financial conditions, which may help the Fed bring inflation back to target. The central bank appears to be relying on markets to play a bigger role in driving rate hikes.
The rise in rates may hurt borrowers, as higher Treasury yields influence mortgages and other major borrowing costs.