WASHINGTON, 26 May. - (ANA) - The bond market is in a state of unrest. For now, policymakers in Washington are shrugging it off.

 

Yields on 30-year Treasury bonds — a government bond that underpins long-term borrowing — climbed to 5.10% on Friday. Earlier, they had surged to 5.2%, the highest level since 2007, when the financial crisis started taking root. It's an identical story for 10-year bonds, which are connected to credit card debt, mortgages, and car loans. The yield on 10-year bonds are near 4.6%, their highest level in a year. These aren't inconsequential movements: Even these small yield increases can add up to $2 trillion to the federal debt over 10 years.

 

Now bond traders are surrendering to the fear that inflation is here to stay, elevating the stakes for Washington policymakers steering an economy under mounting strain. Consumer confidence is plummeting to new lows as Americans struggle to pay more for gas, groceries, and other goods due to the fallout of rising energy prices from the Iran war. Any prolonged climb in yields will amplify the financial pain Americans are experiencing since consumer lending costs increase in tandem.

 

The bond market has acted as a brake on Trump before. In April of last year, the president acknowledged the bond markets had turned "yippy." It became part of the reason he backed down from instituting global tariffs — at least for another few months. During this stretch, it hasn't packed the same firepower that it did last year.   - (ANA) -

 

AB/ANA/26 May 2026 - - -