10-Year Treasury Yield Hits Highest Level in Over a Decade, Raising Borrowing Costs for Government

The yield on the 10-year Treasury note has reached its highest level since 2007, which will increase borrowing costs for the US government. This could significantly impact the economy, including higher mortgage and car payments. The high levels of debt and the Fed's recent hawkish statements contribute to the increase in yields. However, the US government is still considered a safe place to invest, leading to higher interest rates on loans. The higher interest rates make dollar investments appealing, resulting in a stronger dollar and cheaper imports.