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Bond rout lifts Treasury yields near highest levels since early 2025

The 30-year yield has held above 5.0% for several days, pushing the 30-year fixed mortgage average to 6.58% this week.

Reported · Written up by our desk · Economy

A selloff in the world’s largest government bond market has bruised bond prices as investors worry about government debt and increasingly expect the Federal Reserve to raise rates this year, according to LiveMint Markets.

Yields and prices moved inversely, with the 10-year Treasury yield settling at 4.678% on Friday and the 2-year note at 4.328%, both near their highest levels since early 2025. The 30-year yield has closed above 5% for several days.

Mortgage rates track the 10-year Treasury yield, and LiveMint Markets reported that a 30-year fixed-rate mortgage averaged 6.58% this week, up from 6.43% at the start of July and around 6% at the start of the year, citing Freddie Mac.

The article also pointed to higher borrowing costs more broadly, and cited the Treasury’s Thursday auction of 10-year Treasury inflation-protected securities, noting that the real rate for the 10-year had been at its highest level since late 2023. It added that market strategists argue much of the yield rise has been driven by real rates rather than purely by inflation fears.

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