A U.S. bond yield hit 5.1% for 1st time in 19 years. Here’s what it signals

CONSUMER A U.S. bond yield hit 5.1% for 1st time in 19 years. Here’s what it signals By Ariel Rabinovitch Global News Posted September 24, 2026 1:28 pm Updated September 24, 2026 1:31 pm 5 min read Soaring U.S. debt is having an impact on global markets, including a surge in bond yields. Financial analyst, Robert Levy reports. – Aug 23, 2026 LEAVE A COMMENT SHARE THIS ITEM ON FACEBOOK SHARE THIS ITEM ON X SEND THIS PAGE TO SOMEONE VIA EMAIL SEE MORE SHARING OPTIONS DESCREASE ARTICLE FONT SIZE INCREASE ARTICLE FONT SIZE Bond yields continue to rise worldwide, and with the U.S. 10-year Treasury yield now hovering above the five per cent threshold for the first time in nearly two decades, experts say Canadian consumers should take note. Bonds are essentially loans, where governments or companies look to borrow money from the general public, and those bond purchasers expect a return or interest on that borrowed money, which is known as the yield on those bonds. Those yields fluctuate regularly, based on various economic factors as well as supply and demand for those bonds, and yields have been spiking in recent months amid economic uncertainty and geopolitical conflicts, rising inflation and government debt, and expectations of higher interest rates. The 10-year U.S. Treasury bond yield was 5.12 per cent as of publication — the highest since 2007, and a nearly four per cent increase since Wednesday. Meanwhile, the 30-year yield was over 5.45 per cent, the highest since 2002, and an increase of 2.4 per cent since Wednesday. STORY CONTINUES BELOW ADVERTISEMENT “An increase in U.S. bond yields means that borrowers are demanding more compensation to lend money to the government,” says economics professor Michael Boutros at the University of Toronto. “This signals that there is increased risk in lending to the U.S. government. This risk is still quite small, but has increased, as reflected in yields.” “Although most individuals do not directly hold U.S. bonds, nearly everyone is exposed to U.S. bonds in some way.” 2:04 Business Matters: Canadians could face higher borrowing costs this year Stick to the Facts Add Global News as a Preferred Source on Google to see more of our stories in your search results. Why are bond yields rising now? It isn’t always clear why bond yields change when they do, but the spikes since Wednesday align with the news that the Trump administration is considering a 90-day ban on U.S. exports of diesel fuel in order to…