US 5-year Treasury yield hits 4.48%, highest level since February 2025

The US 5-year Treasury yield climbed to 4.48% on August 28, marking its highest reading since February 2025. That’s a meaningful jump from the prior session’s levels around 4.40%.

Back in February 2025 the same yield was trading between 3.58% and 3.80%. The move from there to here represents a shift of roughly 70 to 90 basis points.

A summer of slow escalation

Throughout July and August 2026, the 5-year yield has been bouncing around in a 4.35% to 4.46% band.

A 5-year auction on July 27 came in at 4.408%.

The 2-year yield reached approximately 4.16% in June after hot jobs data forced a rethink of the rate outlook.

Why yields keep climbing

Stronger-than-expected jobs reports in May 2026 were the inflection point, delivering numbers robust enough to make traders recalibrate their Fed expectations. Before those reports, markets had been pricing in at least some probability of near-term easing. After them, those bets evaporated.

What 4.48% means for markets and borrowers

The 5-year yield serves as a benchmark for a wide range of borrowing costs, from corporate debt to auto loans to certain mortgage products.

For equity investors, when risk-free rates climb, the relative attractiveness of stocks diminishes. Higher yields feed directly into mortgage rates, which were already elevated enough to keep housing affordability near historic lows.

Fixed-income portfolios that loaded up on longer-duration bonds during the lower-rate environment are nursing mark-to-market losses, as bond prices move inversely to yields.

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