US Treasury yields hit 2007 high

U.S. government bond yields have surged to levels not seen in nearly two decades, signaling deep concern among investors about the long-term economic outlook.

The 30-year Treasury yield hit 5.2% as a global sell-off in debt markets intensified, driven by fears that the Iran war will keep inflation stubbornly high.

This spike in yields is already pushing up borrowing costs for American consumers, with mortgage and car loan rates reaching multi-year peaks.

Analysts warn that the bond market is firing a warning shot at Washington, suggesting that the era of low-cost debt is firmly over.