Here's what happens to the economy when Treasury yields soar like they are now

Soaring Treasury yields aren't just bad for the government and its $40 trillion debt. They also threaten to raise borrowing costs, hitting everyone from homeowners to credit-card users, while providing limited relief to consumer and potential benefits to banks. Government debt costs leaped higher Wednesday , the product of multiple factors including a fresh report showing higher inflation pressures, surging expectations for a Federal Reserve rate hike in October, and an auction for 5-year notes showing that Treasury demand was weak. Competition from hyperscaler debt issuance also is seen as an aggravating factor.