Yields Test Kevin Warsh

U.S. Treasury yields pushed further into multi-decade highs, with the 10-year note near 5.15% and the 30-year bond near 5.44%. The move came after the Federal Reserve raised its benchmark rate last week, while markets priced in another hike in October. The bond selloff reflects stronger economic data, stubborn inflation, higher oil prices, heavy federal borrowing and expectations of tighter Fed policy. Those yields now feed into household costs, especially mortgages and auto loans. The average 30-year fixed mortgage rate is above 7%, while auto lenders have raised rates in recent months. Investors are watching regional banks, private credit and AI-related debt for stress.