Ahead of his first trip to the Middle East this week, U.S. President Donald Trump said “a lot of talk” was going on about Gaza and that his administration will soon have more to say about a new proposal. This may include a new push for a
and other retailers gave mixed forecasts for upcoming profits amid uncertainty caused by. The market then turned sharply lower after the U.S. government released the results for its latest auction of 20-year bonds.
The government regularly sells such bonds, which is how it borrows money to pay its bills. In this auction, the U.S. government had to pay a yield as high as 5.047% to attract enough buyers to lend it a total of $16 billion over 20 years.That helped push up yields for all kinds of other Treasurys, including the more widely followed 10-year Treasury. Its yield climbed to 4.59% from 4.48% late Tuesday and from just 4.01% early last month. That’s a notable move in the bond market.“Bonds finally appear to be getting equities’ attention,” according to Jonathan Krinsky, chief market technician at BTIG, pointing in particular to the 30-year Treasury yield, which jumped back above 5% and approached its highest level since 2023.
Treasury yields have been on the rise in part because ofin Washington could pile trillions of more dollars onto the U.S. government’s debt. Concerns are also still brewing about how much Trump’s tariffs will push up on inflation in the United States.
The U.S. government’s bonds aren’t alone, and yields have been on the rise recently for developed economies around the world. That’s partly because their governments are continuing to borrow more cash to pay their bills, while central banks like the Federal Reserve have cut back on their own holdings of government bonds.
When the U.S. government has to pay more interest to borrow money, that can cause interest rates to rise for U.S. households and businesses too, including for mortgages, auto loans and credit cards. That in turn can slow the economy. Higher yields can also make investors less inclined to pay high prices for stocks and other kinds of investments.Eight million borrowers who had already enrolled in the SAVE plan don’t have to pay their monthly student loan bills until the court case is resolved. Debt that already had been forgiven under the plan was unaffected.
The next court hearing about this case will be held on Oct. 15.The Fresh Start program, which gave benefits to borrowers who were delinquent prior to the pandemic payment pause, also closed on Sept. 30. During this limited program, student loan borrowers who were in default prior to the pandemic were given the opportunity to remove their loans from default, allowing them to enroll in income-driven payment plans, or apply for deferment, among other benefits.
“The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.”NEW YORK (AP) — Connor Tomasko grew up wary of credit cards. As she taught herself more about managing money, she realized that many people also have bad habits when it comes to payment apps.