Overview

• The yield on the 10-year Treasury crossed 5% for the first time in 16 years due to the Federal Reserve's measures against high inflation, impacting rates on mortgages, student debt, and auto loans.
• Investors are demanding a higher return to lend their money to the U.S. government due to rising U.S. government debt—part of the reason for the spike in Treasury yields.
• Savers stand to benefit from higher yields, with high-yield savings accounts, certificates of deposits, and money market accounts now paying over 5%—the highest in over 15 years.
• The U.S. and China, the world's two most powerful economic engines, show stronger-than-expected growth, suggesting incorrect predictions of weaker growth and probable U.S. recession.
• Federal Reserve Chair Jerome Powell's comments on the possible need for sustained high interest rates led to significant market volatility.