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US 10-year borrowing costs hit 4.79% on renewed Middle East oil fears
The effective 10-year borrowing rate rose to its highest since January 2025 as oil pushed above $92 a barrel and inflation concerns intensified for the Fed.
US borrowing costs rose to a fresh high on Tuesday, with the effective interest rate on 10 years climbing to 4.79%, its highest level since January 2025, according to BBC Business.
The move was tied to renewed strikes in the Middle East that boosted oil prices, which surged above $92 a barrel, and to renewed concerns about inflation staying too high.
BBC Business reports that the spike in yields has also increased speculation that the Federal Reserve could raise interest rates later this month, after comments from Fed governor Michael Barr said inflation had been too high for five years and that the central bank should act decisively if it does not cool.
The article notes that US inflation was 3.4% year over year to July, above the Fed’s 2% target, while policy rates have been held between 3.5% and 3.75% for months.