When Treasury yields go up, it means that the interest rates on Treasury bonds have increased. This can have several implications for the economy and investors:

• Falling demand for Treasury bonds: A rising yield indicates falling demand for Treasury bonds, which means investors prefer higher-risk, higher-reward investments, while falling yield suggests the opposite.

• Higher borrowing costs: When Treasury yields go up, it becomes more expensive for the government to borrow money, which can lead to higher borrowing costs for consumers as well. For example, mortgage rates and car loans may become more expensive.

• Impact on the stock market: Bonds compete with stocks for investors dollars, and when yields go up, equities often go down. Rising yields may signal that investors are looking for higher returns elsewhere, which can lead to volatility in the stock market.

• Impact on the economy: When it gets more expensive for the government to borrow money, it can change a lot of things in the economy. For example, it can lead to tighter financial conditions and policy uncertainty.

Factors that can affect Treasury yields include investor sentiment, economic stability, geopolitical fluctuations, war, and interest rates. When investors have high confidence in the markets and believe they can profit outside of Treasury securities, the yield will rise as the price falls. Interest rates are another significant factor, as they have a direct impact on yields. When the Federal Reserve lowers its key interest rate, it can lead to lower Treasury yields.