US long-term borrowing costs touch highest level since 2004 - Financial Times

Long-term U.S. borrowing costs have climbed to their highest level since 2004, according to the Financial Times, underscoring how persistently firm inflation and a still-resilient economy are reshaping the interest-rate outlook. The move reflects the yield on long-dated Treasuries, which rises when bond prices fall — a sign that investors are demanding more compensation to hold U.S. government debt over extended horizons.

For markets, the development matters because long-term yields serve as a benchmark for borrowing costs across mortgages, corporate bonds, and other credit. When they rise, financing conditions generally tighten, which can weigh on rate-sensitive sectors such as housing and technology, while potentially offering more attractive income to bond investors. It also highlights the tension between market expectations and central-bank guidance on how long rates may stay elevated.

What to watch next: upcoming inflation and employment data, signals from Federal Reserve officials, and demand at Treasury auctions. Together, these will help clarify whether the rise in long-term yields is a durable repricing or a more temporary swing, with implications for currencies, equities, and global capital flows.