This video is a clip from BND: Strategy Room Live Stream on July 25, 2026. What do surging bond yields mean for consumers? This past week the escalation of the military conflict with Iran sent treasury yields soaring, especially the 10-year and 30-year treasuries. The 10-year treasury has a direct impact on residential mortgage rates, auto loan rates, credit card rates, and student loan rates. As the 10-year yield increases, so do borrowing costs. Why is the 30-year treasury so important? The 30-year treasury is a gauge of sensitivity. It gives us an indication of how confident investors are that a government will be able to pay its debt.

BND: Strategy Room Bonus - Increasing yields and the 30-year treasury

The Banker Next Door

What the Surging Bond Yields Mean for Consumers. So I saw this, thought this was pretty good. So a sell-off in government bonds has pushed the 10-year treasury yield to a 2026 high. We can see here yield on the 10-year treasury note. As I told everybody, we're basically hovering around 4.7%.

So renewed hostilities in the Middle East are driving a prolonged sell-off in U.S. government bonds, sending yields to new 18-month highs and lifting borrowing costs for businesses and consumers. The yield on the benchmark 10-year U.S. treasury note, which helps set rates on mortgages and student loans alike, reached 4.71% in early trading Thursday, according to TradeWeb, its highest intraday level since January of 2025.

With rebounding oil prices, fueling inflation concerns, rising yields are already pushing up mortgage rates and undercutting the stock rally. Major indexes have mostly traded water in recent weeks and were down sharply Thursday. And here's what to know. So why are yields rising now? Well, treasury yields are largely determined by investors' expectations for short-term interest rates set by the Federal Reserve. When investors expect those rates to go up, the relative appeal of treasuries diminishes.

Diminishes, causing their prices to fall and their yields rise to a competitive level again. The most immediate reason yields are rising is the resumption of fighting between the U.S. and Iran. The resulting rebound in oil prices has renewed worries about the inflation outlook and spurred a shift in interest rate expectations. As investors bet that the Fed will need to raise rates to bring inflation down. Still, yields have proven to be only loosely connected to oil prices in recent months.

BND: Strategy Room Bonus - Increasing yields and the 30-year treasury

Read the full transcript

The candid version is on a podcast,
not the earnings call.

BND: Strategy Room Bonus - Increasing yields and the 30-year treasury

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.