Story perspectives

Treasury Yields Top 4.44% as War, Deficit Spur Costs

6/2/2026

Summary

Story summary

U.S. Treasury yields rose above 4.44% in June, the highest since the Iran-Israel conflict began, as investors priced war-driven inflation and larger deficits.
Kent Smetters and Glenn Hubbard said 60% of the rise reflects borrowing expectations, 40% war-related inflation.
Democratic candidates warned rates raise mortgage and credit-card costs while Treasury Secretary Scott Bessent cited a Government Accountability Office (GAO) estimate of $500 billion in fraudulent spending as an option, no plan.

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Story summary

U.S. Treasury yields rose above 4.44% in June, the highest since the Iran-Israel conflict began, as investors priced war-driven inflation and larger deficits.
Kent Smetters and Glenn Hubbard said 60% of the rise reflects borrowing expectations, 40% war-related inflation.
Democratic candidates warned rates raise mortgage and credit-card costs while Treasury Secretary Scott Bessent cited a Government Accountability Office (GAO) estimate of $500 billion in fraudulent spending as an option, no plan.