US Treasury Yield Hits 5% for First Time Since 2007, Economy Enters New Era

US Treasury yield hits 5% for first time since 2007, driven by fears over energy prices and inflation. This marks a pivotal milestone with sweeping implications for consumers and businesses, and could impact the midterm elections. The yield on the 10-year Treasury is a critical driver of interest rates throughout the economy, and its recent rise has already pushed mortgage rates back up toward 7%. The US government spends more on interest than on national defense, and higher yields would significantly drive up borrowing costs.