Updated

A sharp selloff in U.S. Treasurys pushed yields higher this week, driving the 30-year fixed mortgage rate up to 7.45% — its highest level since April 2024 — and raising fears among analysts that 8% mortgage rates could return. Rising yields are also being flagged as a threat to auto loan affordability, as bond markets price in expectations of persistent inflation and further Fed tightening. The move complicates the outlook for incoming Fed leadership, with markets betting the central bank under Kevin Warsh will need to take a firmer stance on inflation even as growth concerns persist. Separately, back-to-back weak Treasury note auctions showed investors are unconvinced by the Treasury's bond-buyback efforts meant to calm the rattled market, underscoring broader unease about demand for U.S. government debt.