Overnight US 7 year note auction ended at 4.716% up from 4.185% the previous month and up from 3.85% in Dec 2023.
US Treasuries would need to be issued at a higher rate to attract enough interest.
With the billions that the US Govt is spending to shore up Ukraine/Israel, they would need to be issuing more USTs over time and this is why US rates would have to stay high as market participants would demand higher yield for US fiscal profligacy.
The US Govt may not care as much if they eventually land into a recession with higher rates, as long as they buy enough time to sail through to the November election, and the eventual winner can then deal with the carnage on the other side. If it is Trump, then the Dems won't care. If it is Biden or another Dem nominee, that's another 4 years for people to hopefully forget once the next election cycle comes around.
