Retail mortgage rates have returned to levels above 7%, and market participants currently price a 25% probability of a Federal Reserve rate hike in October. Treasury Secretary Scott Bessent dismissed concerns over the spike in yields during an interview with Axios, stating the rise is consistent with global trends and does not warrant consternation. While Bessent admitted he cannot control the bond market, he urged investors to slow down and think about the current environment.
Tuesday, October 20, 2026
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US Treasury Yields Hit 24 Year Highs and Threaten Corporate Defaults
US Markets15 days ago
Firms with low credit ratings are overhauling their borrowing plans to avoid bankruptcy as a sharp retreat from government bonds pushes funding costs higher. The yield on the 10 year Treasury climbed to 5.34% and the 30 year benchmark hit 5.70% on Monday, marking the highest levels since 2002. This surge is driven by resilient economic growth and booming AI investment, coming at a time when the US national debt has topped $40 trillion, further pressuring long-term securities.
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