Treasury Yields Reach Highest Levels Since 2002

U.S. Treasury yields reached levels not seen in more than two decades on Thursday as a global bond selloff pushed borrowing costs higher. Reports put the 10-year yield above 5.3%, its highest level since 2002, while the 30-year yield also reached territory last seen that year. The exact reported readings varied by the time of observation. One report placed the 10-year yield at 5.3338%, up 4 basis points, and the 30-year yield at 5.6702%, up 3 basis points. Another put the 10-year at 5.342% and the 30-year near 5.64%. The two-year yield was reported at about 4.9%. Treasury prices move inversely to yields, and the 10-year rate is a key reference for borrowing costs including mortgages, auto loans and credit cards. The rise extends a months-long increase in government borrowing costs worldwide. Reports cited persistent inflation, strong economic activity, expectations for further Federal Reserve rate increases and concern about government deficits and debt issuance as factors weighing on bonds. Their relative contributions were not quantified. The increase also came amid higher yields in some overseas markets, though reported readings varied by market and observation time.