Investors want a bigger reward for lending money

On Thursday, Treasury yields surged to their highest level in seven months—the ten-year yield topping four point seven percent. Per Axios, the surge doesn't reflect inflation fears as you might expect. Instead, investors are demanding higher compensation for long-term lending because governments and companies are competing fiercely for capital, from AI infrastructure buildout to widening fiscal deficits. The implication: mortgage rates are unlikely to fall soon, and if these yields persist, the government's debt service costs could balloon by roughly one point eight trillion dollars over the next decade.

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