US bond yields have surged to levels not seen in a generation. The 10-year Treasury yield hit 5.342 percent on Thursday, its highest since early 2002.

The 30-year yield climbed to 5.683 percent. The rise caps the biggest quarterly jump in borrowing costs this century.

Traders blame several forces. The US economy is running hot on AI investment. Inflation remains sticky. The federal deficit keeps growing. And the Treasury must sell more bonds to fund it.

The surge is already hurting homebuyers. The 30-year mortgage rate has topped 7 percent, pricing many families out of the market.

Stocks barely moved on the news. The Dow rose 0.04 percent to 50,926. The S&P 500 added 0.19 percent to 7,666. The Nasdaq edged up 0.04 percent to 26,871.

The pain is spreading abroad. The gap between French and German 10-year bonds blew out past 140 basis points, the widest since 2012. France’s own yields neared 5 percent, a 24-year high.

Analysts warn that higher yields raise the cost of everything. Credit cards, car loans and business borrowing all get more expensive.