US long-term borrowing costs touch highest level since 2004 - Financial Times

US long-term borrowing costs have reached their highest level since 2004, according to the Financial Times, marking a notable shift in the pricing of government debt. The move reflects the yield on long-dated US Treasuries climbing to levels last seen roughly two decades ago, a period when the Federal Reserve was in the early stages of tightening policy.

For markets, long-term yields serve as a benchmark for borrowing costs across mortgages, corporate bonds, and other credit. When they rise, the cost of financing tends to increase broadly, which can weigh on valuations for rate-sensitive assets. The development also matters because it suggests investors are demanding more compensation to hold longer-dated government debt, whether due to inflation expectations, fiscal supply concerns, or a reassessment of the interest-rate outlook.

What to watch next: whether yields stabilize or continue climbing, how the Federal Reserve frames its policy path, and whether higher long-term rates feed through to broader economic activity. For now, the milestone underscores that the era of ultra-low long-term borrowing costs remains firmly in the past.