June 24 - Yields on the 10-year note breached 2.6 percent for the first-time since August 2011, which are likely to influence borrowing costs for home loans, credit cards, and auto financing in the future. Conway G. Gittens reports.
The Daily Digit is 2.6 percent. Benchmark yields on the 10-year note touched that level early Monday - the first time yields have touched or broken through that rate since 2011. And what a rapid rise it's been. Yields on debt issued by the U.S. Treasury have soared since last Wednesday when Federal Reserve Chairman Ben Bernanke said he could start slowing bond purchases aimed at keeping interest rates low as early as this year - if the economy continues to improve and inflation does not flare out of control. With bond market rates rising to two-year highs, higher borrowing costs for stuff like auto loans, credit cards and mortgages won't be too far behind. Bankrate.com says the average daily rate on a 30-year fixed home loan jumped to 4.36 percent from 3.94 percent last week.