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Tue, 15 Sep 2026

Tue, 15 Sep 2026 US borrowing costs hit highest level since 2007

The effective interest rate on US government bonds over 10 years, known as the 10-year Treasury yield, has risen as high as 5.04% but has eased back since.

* US government borrowing costs have climbed to their highest level since 2007, with the effective interest rate on 10-year Treasury bonds reaching as high as 5.04%.
* The increase is driven by concerns over inflation caused by rising oil prices, which have surged to over $109 a barrel.
* Investors are anticipating that the US Federal Reserve will raise interest rates to combat inflation, but President Donald Trump opposes a rate hike.
* Higher interest rates and inflation tend to drive up government borrowing costs, with bond yields also being influenced by geopolitical tensions and competition for debt from tech firms.
* The rise in borrowing costs has been described as "orderly" rather than sudden, but experts warn that rates could remain elevated if the current situation persists.