Longer-term U.S. Treasury yields rose again Wednesday, with the 10-year yield approaching 4.6% and the [30-year rate surging above 5%](

Trump's budget plan passes House by one vote; Senate showdown next. Despite lower yields, US Dollar climbs as markets brace for inflationary risks. US Treasury yields retreated on Thursday after the 30-year US bond yields reached their highest level in 19 months amid concerns regarding the increase of the US fiscal deficit,

And rates on UK gilts, German bunds, and Australian bonds are also rising. To make matters even more unusual, US Treasury yields are going up while the dollar is weakening (something that doesn’t usually happen.

Investors have focused this week on a selloff in the Treasury market. But it hasn't affected all Treasurys. Short-term debts, like the 2-year note, have been stable. Only longer-term instruments, like the 10-year note and 30-year bond,

Already in 2024, spending on net interest surpassed all spending on Medicare and defense. With higher rates and debt, its costs would not only remain above those programs but come within 1.9 percent of the cost of Social Security’s retirement program, the most expensive line item in the budget.

On Wednesday, the Treasury bonds auction was so weak that 20-year and 30-year yields continued to rise as investors expect a rising wave of mounting federal

Bond yields spiked following Moody's downgrade of US debt. The move highlights a big concern for bond investors that could spark more chaos in markets.

Yields for 30-year U.S. Treasury notes breached the 5% mark for the first time since October 2023— back when the Federal Reserve was trying to stabilize inflation by sharply raising interest rates. Aside from the brief spike in October 2023, 30-year yields last touched 5% in 2007.

The average rate on a 30-year mortgage has remained relatively close to its high so far this year of just above 7%, which it set in mid-January. The average rate’s low point so far was five weeks ago, when it briefly dropped to 6.62%. It’s now at its highest level since Feb. 13, when it averaged 6.87%.

The bond yields that underpin mortgage rates rose this week after the US and China cut a temporary trade deal. That led to an uptick in average mortgage rates.

Key Takeaways Treasury yields spiked on Wednesday after a Treasury debt auction suggested concerns about unsustainable government deficits are eroding demand for federal debt.Morgan Stanley analysts in a note earlier this month forecast yields at their current level would spill over into the stock market and pressure valuations.