The bond rout is bruising would-be home buyers—and challenging the Fed

A selloff in the US Treasury market driven by Fed policy uncertainty, a resilient US economy, and renewed US-Iran tensions has pushed yields sharply higher, with the 10-year yield at 4.678% and the 30-year yield solidly above 5%. Rising yields, particularly in real rates, are lifting mortgage rates to 6.58% from about 6% at the start of the year, squeezing prospective home buyers and raising borrowing costs across consumer and corporate debt. Fed chair Kevin Warsh faces pressure ahead of next week's FOMC meeting, with analysts noting that an unexpected rate hike could initially hurt bonds but ultimately reinforce Fed credibility and lower long-term yields.