Rising bond yields threaten to push up U.S. borrowing costs, experts say. Here’s what to know.

September 1, 2026 / 3:12 PM EDT / CBS News

Treasury yields edged higher on Tuesday, extending a global bond sell-off and threatening to raise borrowing costs for millions of Americans.

The yield on the 10-year Treasury, which influences mortgage rates, rose to 4.78%, up from 4.75% late Monday and the highest level since January 2025. The yield on the 2-year Treasury, which closely tracks expectations for the Federal Reserve's interest rate decisions, rose to 4.37%, up from 4.34% late Monday. The 30-year Treasury hovered around 5.25% on Tuesday.

The global rout pushed a key Bloomberg gauge of bond yields to 3.72%, its highest level since June 2008. The sell-off is being driven partly by persistently higher inflation and concerns about government debt, prompting investors to demand higher yields as compensation for the added risk.

"Fiscal concerns, rising energy prices and AI-related investment have lifted long-term government bond yields across major economies to multi-decade highs," James Reilly, a senior markets economist at Capital Economics, said in a research note Tuesday.

Here's what to know about the sell-off and what it means for you.

Yields are rising as investors, spooked by inflation and rising government debt, dump their government bonds. Bond…

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