U.S. 10-year Treasury yield nears 5 percent and mortgage rates exceed 7 percent, Simon Dixon notes

U.S. 10-year Treasury yield nears 5 percent and mortgage rates exceed 7 percent, Simon Dixon notes
U.S. 10-year yield tests 5 percent

Simon Dixon, chief executive officer at BankToTheFuture, highlights that U.S. 10-year Treasury yields are approaching 5 percent, with mortgage rates now back above 7 percent.

Dixon points to the significant rise in borrowing costs for the U.S. government, noting that the Financial Industry Committee now requires a yield of about 5 percent to lend to the U.S. government for a decade. He describes this as a very expensive cost of capital for an economy with the world's reserve currency.

Earlier this year, Dixon raised concerns that changes in the bond market could mean the U.S. risks its status as the global reserve currency, as detailed in a previous analysis. He has also assessed how companies in the Middle East have seen profits linked to war and reconstruction, explored in a separate report. Dixon’s recent comments add to his ongoing focus on interest rates and capital costs.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.