The 10-year Treasury yield closed at its highest level since 2002. Here's what that means for borrowers
The yield on the 10-year U.S. Treasury note closed at 5.31% on 5 October, according to the Treasury Department's daily data. That is its highest close since 5.32% on 14 May 2002 [1]. Mortgage rates have risen with it: Freddie Mac's 30-year average reached 7.40% in the week to 8 October, up from 6.30% a year earlier [4]. Federal interest costs have also climbed. Net interest reached $1.017 trillion in fiscal 2026 through August, more than the government spent on national defense, according to the Monthly Treasury Statement [16]. Fed Governor Christopher Waller has attributed the rise in yields to growth expectations, fiscal concerns and heavy AI-related borrowing rather than higher inflation expectations, in remarks on 13 October [8][9]. The yield has since eased, to 5.21% at the 13 October close, the latest in Treasury's data [1].