US borrowing costs reached their highest level in nearly two decades on July 30, with the 30-year Treasury yield climbing to 5.23%, according to market data. Credit card serious delinquencies reached 13.1% in the first quarter of 2026, according to a New York Fed quarterly report, the highest share recorded since 2010 but still below the 13.7% peak hit during that crisis year.
The 30-year yield had not traded at that level since June 2007, before the financial crisis deepened. Treasury yields move inversely to bond prices and reflect the market's expectations for interest rates, growth and inflation. A sustained climb in long-term borrowing costs typically raises debt service burdens for government, corporations and consumers carrying variable-rate obligations.
Credit card delinquencies measure accounts at least 30 days past due as a percentage of all accounts. The metric deteriorates when unemployment rises or when consumer spending outpaces income growth. The New York Fed tracks this measure quarterly across the US banking system. A 13.1% delinquency rate means roughly one in seven credit card accounts were behind on payments in early 2026.
The 30-year yield at 5.23% represents an increase of approximately 18 basis points from the start of July 2026, according to market trading records. The move accelerated through the final week of the month as data on inflation and employment shaped near-term rate expectations. Credit card delinquencies have climbed 220 basis points from their post-pandemic low of 11.1% in the second quarter of 2024, nearly halfway back to crisis levels.
If delinquencies continue rising at the current pace of roughly 55 basis points per quarter, they would reach 14% by late 2026, a level not seen since the aftermath of the 2008 financial crisis.
