
Bond vigilantes drive US yields to 19-year high

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Yields hit peak: Long-term U.S. Treasury yields surged to 5.18%, the highest since 2007, amid inflation, strong growth, and geopolitical tensions. Fiscal risks grow: Rising yields could add $2 trillion to U.S. debt over the next decade, with interest costs consuming 30% of federal revenue by 2036. Fed turns hawkish: Fed officials signal rate hikes remain possible, as inflation risks from the Iran war and resilient consumer spending keep pressure on policy.

