The yield on the 10-year U.S. Treasury bond climbed to a 24-year high during Thursday trading, a development that economists describe as "concerning" and homeowners describe as "please stop."

The 10-year bond yield topped 5.34 percent early Thursday morning, its highest mark since April 2002, when it reached a closing peak of 5.48 percent. By midmorning Thursday, it had eased slightly to roughly 5.32 percent - still up about 3 basis points from Wednesday's close, because the universe enjoys symmetry.

The yield has been spiking for seven months, ever since closing at 3.96 percent on Feb. 27 - the day before the U.S. and Israel launched the war with Iran. Nothing says "bond rally" like geopolitical conflict.

The Middle East conflict has driven up energy prices thanks to Iran's restrictions on shipping in the Strait of Hormuz, which in turn fueled inflation stateside. Annual inflation, as measured by the personal consumption expenditures price index, was 3.4 percent in August, the Bureau of Economic Analysis reported Wednesday. The national average price of a gallon of regular gas sits at roughly $4.41 as of Thursday - about $1.43 higher than two days before the conflict began, according to AAA. So that's going well.

Rising government debt has also contributed to bond yields increasing globally. The U.S. national debt exceeded $40 trillion in August and now stands at roughly $40.1 trillion, a number that has officially stopped meaning anything to the human brain.

The 30-year Treasury bond yield - which pays a higher interest rate than shorter-term securities, because time is money - has also risen. As of midmorning, it was up roughly 3 basis points from Wednesday's close, trading at about 5.67 percent, its highest point since April 2002. The more things change.

And because no modern economic story is complete without it: rising bond yields are also attributable to demand for artificial intelligence data centers and models, which Federal Reserve officials have cited as putting upward pressure on prices. Fed Governor Lisa Cook said Monday at a technology conference in Oakland, Calif., that "data center investment relies on inputs, like construction labor and energy, that are broadly used in many sectors in the economy. As a result, increased AI investment could introduce price pressure to those other sectors." In other words, the robots are coming for your electricity bill.

The sell-off in the American bond market is leading to increased borrowing costs, including for home loans. The average 30-year mortgage rate was 7.03 percent last week, surpassing 7 percent for the first time since January 2025, according to Freddie Mac. So if you were thinking about buying a house, perhaps consider a tent.