US borrowing costs surge to 2007 levels
The yield on 10-year US Treasury bonds climbed as high as 5.04% in mid-September, its highest level since 2007, as global benchmark oil prices jumped from around $86 to over $109 a barrel following renewed doubts about Saudi Arabia's ability to keep exporting amid regional tensions tied to the ongoing US-Israel war with Iran. Rising oil prices have fed inflation worries that are pushing bond yields higher worldwide, prompting the US Treasury to buy back bonds in an effort announced by Secretary Scott Bessent as 'successful' at containing the increase. Investors are also pricing in a possible rate hike from new Federal Reserve Chair Kevin Warsh to combat the inflation, a move President Trump opposes given his long-standing preference for lower rates - the same dispute that fractured his relationship with Warsh's predecessor, Jerome Powell.
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As it ran
15 September 2026
- US borrowing costs hit highest level since 2007 BBC News
- Key U.S. Borrowing Rate Rises to Highest Level Since 2007 New York Times