Bond yields have risen to their highest levels in about two decades.

This affects anyone who borrows money, from people struggling with inflation to businesses building AI data centers.

It also matters to people who do not borrow.

Savers can earn more interest from bonds or high-yield savings accounts.

However, the value of stocks in their 401(k) accounts could fall.

For U.S. taxpayers, higher yields mean the federal government pays more interest on its debt.

This leaves less money for other needs.

Governments and large companies raise money by selling IOUs to investors.

They do this instead of asking banks for loans.

IOUs repaid years later are called bonds.

Investors trade them in the bond market after they are issued.

If bonds look less attractive, a buyer can get one earlier worth $100 for less than that.

The bond still pays the same interest rate, so the new buyer gets a bigger percentage return.

That return is called the yield.

When a bond's price drops, its yield rises, and the reverse is also true.

The U.S. Treasury is the centerpiece of the bond market.

Its yields are the baseline for most other borrowing rates.

A 30-year fixed mortgage rate, for example, is likely the 10-year Treasury yield plus more.

This depends on the borrower's credit score.

Different Treasury bonds affect different loans, from 12-month certificates of deposit to company borrowing.

They do not always move together, but right now they are all rising.

The 10-year Treasury yield climbed to nearly 5.18% on Thursday.

That is back to where it was in 2007.

The yield has been climbing since bottoming below 0.50% in 2020 because of the COVID pandemic.

Its rise sped up after the war with Iran sent oil prices and inflation worries higher.

The average long-term U.S. mortgage rate has reached 7% for the first time since early 2025.

High Treasury yields also undercut prices for stocks, gold, and cryptocurrencies.

Much of the recent rise comes from higher oil prices and inflation worries.

It also comes from growing government and corporate debt.

Part of it also reflects a solid U.S. economy, which could lead the Federal Reserve to raise rates again.

Yields are climbing worldwide, including in Germany and Japan.