Yield demands spike as investors shun long-dated US Treasurys

Long-term Treasury yields rose to 4.37% after April 2 due to a wave of bond selling. Investor concerns about inflation and deficits led to increased term premiums, impacting borrowing costs across the economy.

Mortgage rates have surged to 6.8%, representing elevated borrowing costs. The Federal Reserve’s potential rate cuts may not ease these pressures, with the current market showing a significant divergence between long and short-term yields.