El-Erian warns 5.27% 30-year yield signals higher U.S. living costs ahead

Economist Mohamed El-Erian argues that the 30-year U.S. Treasury yield around 5.27% signals a structural shift that will raise the cost of living in the U.S. With the national debt exceeding $40 trillion, net interest is projected to reach about $963 billion in fiscal 2026—nearly 20% of federal revenue—limiting funds for other priorities. The rise in real yields reflects heavier AI‑driven borrowing and thinner traditional demand, amid global factors that add bond-market volatility. Even Freddie Mac’s mortgage rate near 6.65% suggests housing and other major expenses will remain expensive for households.