US 10-Year Treasury Yield Hits 4.595%, On May 21, 2025, the yield on the 10-year U.S. Treasury bond rose to 4.6%, the highest since February. This increase followed a weak 20-year bond auction, where demand was lower than expected. Investors are concerned about the growing U.S. budget deficit and a new tax bill that may add trillions to the debt. As a result, stock markets fell sharply, with the Dow Jones dropping over 600 points. Higher yields make borrowing more expensive and can hurt the economy. Analysts warn that if yields keep rising, it could lead to more market troubles.
Key Facts: US 10-Year Treasury Yield Hits 4.595%
- The 10-year Treasury yield rose to 4.6% on May 21, 2025.
- A $16 billion auction of 20-year bonds saw weak demand, with yields exceeding 5%.
- The proposed tax-cut bill could add up to $5 trillion to the federal debt.
- Major stock indexes, including the Dow and S&P 500, experienced significant declines.
- Investors are concerned about potential long-term inflation and fiscal sustainability.
- Higher yields may lead to increased borrowing costs across the economy.
- The bond market’s reaction reflects broader concerns about U.S. economic policy
Source: Business Insider
Tags: 10-Year Treasury Yield, U.S. Bonds, Fiscal Policy, Inflation, Stock Market, Interest Rates, Economic Outlook