The yield on the U.S. 30-year Treasury bond exceeded 5.3 percent on Tuesday, suggesting upcoming increases in borrowing costs nationwide. On Tuesday afternoon, the 30-year bond yield stood at 5.284 percent, having opened at 5.308 percent and peaked earlier at 5.337 percent. This marks the highest rate for these bonds since April 2007, when yields hit 5.44 percent.
The bond yield fell by two-tenths of a percentage point from the year’s start to late February, coinciding with the onset of the Iran war. Since then, it has steadily risen. A July poll found that most Americans feel an affordability crisis is underway. Rising bond yields push mortgage rates up, with the average 30-year fixed mortgage at 6.75 percent, below the five-year peak of 8 percent in October 2023.
Higher bond yields also lead to increased costs for other financial products, including credit cards and auto loans.
Essential Reads
Key business and economic news with implications for this week and beyond:
- If you held State Farm auto insurance last year, expect a dividend due to stronger-than-expected performance in 2025.
- A Bill Gates-owned luxury resort faces a $100 million lawsuit over its condition.
- While many areas see fewer homebuyers, parts of the Northeast and Midwest are exceptions.
Upcoming Events
The Federal Reserve will release minutes from its July meeting on Wednesday at 2 p.m. EDT.
Additional News
Business and economic updates from other sources:
- ‘Buy Now, Pay Later’ services are expanding to cover needs like electricity and rent.
- Oil prices closed at a three-week high as hopes for a U.S.-Iran peace deal fade.
Other Top Stories
Iranian Parliament Speaker criticized U.S. officials for being inadequate in negotiating with Tehran.
A preservationist group is urging the Supreme Court to block President Trump’s White House ballroom construction.