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    "headline": "Global bond yields climb on deficits and inflation, squeezing mortgages and markets",
    "dek": "Rising global government bond yields pushed the 10-year U.S. Treasury to 4.80%, the highest since early 2025, on inflation and deficit fears.",
    "prose": "On 2026-09-01, the yield on the 10-year U.S. Treasury reached 4.80%, its highest level since early 2025, according to The Associated Press's reporting. [^1]\n\nThe Congressional Budget Office estimated in August 2026 that the U.S. federal government's budget deficit would top $2 trillion this year, equal to about 6% of the U.S. economy, and the U.S. government said its total debt has reached $40 trillion. [^2]\n\nUS Treasury Secretary Scott Bessent stated on 2026-06-25 during a conversation with Larry Kudlow in Asheville, North Carolina, that new oil pipelines will allow the US to bypass the Strait of Hormuz within two years. [^3]\n\nThe US Treasury Department announced plans to expand sanctions against financial institutions and entities maintaining commercial relationships with Iran. [^4]\n\nUS Treasury Secretary Scott Bessent stated on September 1, 2026, that the Strait of Hormuz will be like a worthless piece of water in two years because oil will be shipped through land-based pipelines. [^5]\n\nOn 2026-09-01, the 5-year U.S. Treasury yield touched 4.55%, its highest since October 2025, and serves as a benchmark that influences auto loan rates. [^6]\n\nTen-year German bond yields reached 3.35%, the highest in more than 15 years, and 10-year U.K. bond yields reached 5.14%, approaching levels not seen since the 2008-2009 global financial crisis. [^7]\n\nScott Bessent claimed that in two years, the Strait of Hormuz will become a body of water with no value for energy transport. [^8]\n\nTwo tankers attempting to exit the Strait of Hormuz were hit by projectiles late on 2026-06-24, according to the maritime security consultancy Marisks. [^9]\n\nUS officials stated that the branches of Banque Misr in the United Arab Emirates conducted business worth 1.8 billion dollars with Iran over the last two years. [^10]\n\nIran has effectively blocked the Strait of Hormuz during the Middle East war, disrupting shipping for oil, natural gas, and other commodities. [^11]\n\nScott Bessent remarked that the Strait of Hormuz is a choke point for many other countries but not for the United States. [^12]",
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