With yields on Treasurys continuing to push higher, consumers are likely to see interest rates on their borrowing rise — including for car loans, experts say.
Across both short-term and long-term Treasurys, yields have climbed as stronger-than-expected economic data has fueled inflation concerns and expectations that the Federal Reserve could raise interest rates further.
Last week, the central bank's rate-setting committee boosted its federal funds rate — the rate banks charge one another for overnight lending — by a quarter-point to a target range of 3.75% to 4.0%. That benchmark can impact the interest rates consumers face when borrowing money, as well as how much their savings can earn.
The yield on 30-year Treasury bonds reached 5.446% Thursday morning, a level not seen since 2004. The 10-year Treasury note yield — a benchmark for mortgage rates — jumped to 5.15%, which was last hit in 2006. The five-year Treasury yield was above 5% in mid-morning trading, which is the highest it's been since 2006.
"Many auto loan interest rates move with the five-year or 10-year Treasury note. When bond yields are on the rise, we typically see auto loan interest rates move up as well," said P...