Rising U.S. Treasuries Signal Higher Borrowing Costs Ahead

U.S. Treasury yields are rising due to worsening deficits, heavy corporate borrowing, and uncertainty about Federal Reserve policy under Chair Warsh, lifting borrowing costs for mortgages and business loans; the 30-year yield recently reached 5.26%, the highest since 2007, signaling a high-rate environment may persist as deficits grow and capital competition intensifies.