Why the bond market is freaking out, and what it means for your money

(CBS) — The bond market is flashing red. The yield on the 30-year Treasury note reached 5.44% on Wednesday, its highest level since 2004, before slipping slightly on Thursday morning. The 10-year Treasury, which influences mortgage rates, briefly neared 5.15% on Thursday morning, a level it last reached in 2001.

Yields had already risen amid concerns about inflation and growing U.S. debt. They jumped further on Wednesday after stronger-than-expected economic data led investors to price in additional interest-rate hikes as the Federal Reserve battles inflation. Several members of the central bank’s Federal Open Market Committee (FOMC), which sets rates, also signaled this week that they favor further increases.

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