Surging yields and 7% mortgages: Investors and consumers are getting jittery as interest rates spike

The market is getting spooked by the prospect of higher interest rates. The 10-year US Treasury yield spiked to 5.04%, marking a new post-crisis peak. Mortgage rates have broken through the 7% threshold, further hobbling the already weak housing market. US stocks were rattled on Wednesday as bond yields spiked to a new post-Great Financial Crisis peak, signaling investors' rising rate expectations and their unease in holding government debt amid fiscal uncertainty, geopolitical turmoil, and inflation fears. The 2-year yield, which is most sensitive to the outlook for Fed policy, jumped nearly 10 basis points to 4.87%, its highest level in two years.

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