10-year Treasury yield spikes to highest point since 2007

The benchmark 10-year U.S. Treasury bond yield again hit a 19-year high on Wednesday, as the market sell-off continues amid the Iran war and rising government debt.

The 10-year note closed at 5.11 percent on Wednesday, up roughly 14 basis points from its closing point on Tuesday. The 10-year bond yield peaked at more than 5.13 percent on Wednesday.

Wednesday marked the highest close for the 10-year bond yield since July 2007. The note previously hit that milestone last week, a day after topping 5 percent for just the second time since the 2008 global financial crisis.

The yield on the 10-year bond has steadily risen since the Iran war started, as investors have fled the market in part due to the economic upheaval the conflict has driven. On Feb. 27, the day before the U.S. and Israel launched the Iran war, the 10-year bond yield closed at 3.96 percent.

The Iranian military continues to crack down on shipping in the Strait of Hormuz, saying last weekend it struck an oil tanker in the waterway.

Adm. Brad Cooper, the head of U.S. Central Command, also said Saturday that American forces supported the transport of more than 1 billion barrels of crude oil through the strait “in the last couple of months.”

West Texas Intermediate crude oil, the North American benchmark, closed at $92.16 per barrel on Wednesday after again surpassing $100 last week.

The war and its resultant energy shocks are not the only reason for the bond market sell-off, though. Mounting public debt held by global powers, including the U.S., has also led to investors fleeing.

The U.S. national debt is approaching $40.1 trillion, after hitting the $40 trillion threshold in August.

The rise in the 10-year bond yields portends higher borrowing costs for prospective American homebuyers as 30-year mortgage rates closely follow the note.

The average 30-year mortgage rate was 6.95 percent last week, marking its highest point since January 2025, as reported by Freddie Mac .

The spike in bond yields is not limited to the U.S., either, as yields rose Wednesday in the U.K. , Germany and Japan .

The global sell-off prompted Brookings Institute Robin Brooks to call Wednesday the “worst day in global bond markets in quite some time.”