Long-Term Treasury Yields Spike, 1- to 7-Year Yields Explode, Mortgage Rates Hit 7.12%, Bond Market Gets Spooked

US Treasury yields have spiked, with the 10-year note reaching a three-year high. The Treasury Department's $6 billion bond buyback program, aimed at stemming rising yields, fell short of expectations. According to Yahoo Finance, the program only received $10 billion in offers, half of the usual amount.

Mortgage rates have also been affected, with the 30-year fixed rate reported at 7.12% by Freddie Mac, as cited by Yahoo Finance. The bond market and mortgage rates are interconnected, and the hope was that the bond buyback program would ease yields and give mortgage rates some room to move lower.

The reasons behind the spike in yields are varied, with Yahoo Finance citing inflation, deficits, and competition from the AI debt binge, as well as factors such as Trump's free-money promise, as noted by Wolf Street. The 10-year Treasury yield remained just below 5% on Friday, with yields mixed on the day.

Brief written by urgent.news from Wolf Street, Yahoo Finance — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.