The government's long-term borrowing costs jumped to their highest level since 2007, which is bad news for the government, for anyone with a loan, and for people already stretched by high prices.

• Investors are demanding much higher returns to lend to the US government, pushing 30-year rates above 5%.
• Two huge borrowers are soaking up the available money: AI companies like Alphabet, Amazon, and Microsoft building data centers, and a federal government now $40 trillion in debt.
• Investors also worry Washington could let inflation run hot to shrink the real value of what it owes, so they want extra payment for the risk.
• The Treasury stepped in and will double its buybacks of long-term bonds, funding the move by issuing more short-term debt — a fix that lowered rates for now but leaves the government more exposed if rates rise again.
• The collapsed US-Iran ceasefire is keeping oil near $88 a barrel and inflation fears alive, with the Strait of Hormuz closed and no talks underway.

Outlook: Interest costs are on track to top $1 trillion this year, and unless rates fall, higher borrowing costs will keep feeding through to mortgages and business loans.