Bond market pressure is spilling into the real economy as long-term U.S. Treasury yields rise and the yield curve steepens. According to Sina Finance, Wall Street is now waiting for Fed Chair Kevin Warsh to speak at Jackson Hole.

According to Sina Finance, higher yields are feeding through to mortgage, auto loan, credit card, and other consumer borrowing costs. The article said the 30-year mortgage rate for homebuyers has reached 6.75%, while FactSet data showed the spread between 2-year and 10-year U.S. Treasuries has widened by nearly 29 basis points since June 24.

The report said several forces are pressuring bonds, including the Iran war, heavy investment in AI infrastructure, and large federal fiscal deficits. It also cited BCA analysts Matt Gertken and Ma Yushu, who wrote in a recent client note that a democratic socialist might be willing to risk a political career to push the U.S. toward higher taxes.