US 30-year bond yield climbs back to 5.27% after Treasury buyback
Why it matters: Higher long-term yields can feed into mortgage and auto-loan costs as US debt tops $40 trillion.
Long-term US borrowing costs rose again after a brief drop sparked by the Treasury Department's debt buyback move. The 30-year Treasury yield climbed to about 5.27% on Friday, reversing much of the fall from 5.34% to 5.18% earlier in the week after Treasury stepped in to support demand for government bonds. Analysts said the effect faded quickly as investors focused on heavy global borrowing, higher oil prices and inflation risks. Treasury figures this week also showed US national debt has more than doubled in a decade to $40 trillion, adding to concern that rising borrowing needs will keep pressure on yields. Higher Treasury yields can ripple through to consumer borrowing, including mortgages and car loans.