Long-term borrowing costs in the United States have surged to their highest levels since January 2022, with the 10-year Treasury yield climbing towards 4.5%, an increase of 0.3 percentage points since the beginning of April. Factors contributing to this rise include foreign investors selling U.S. Treasuries, an unwinding of basis trades by hedge funds, and heightened risk aversion among asset managers. Despite the increase in yields, the U.S. dollar has weakened, declining nearly 5% over the same period. Analysts have noted a divergence between rising long-term rates and a falling Dollar Index, suggesting that a risk premium related to fiscal or policy uncertainty may be developing. The S&P 500 index has shown recovery, indicating a more optimistic growth outlook, even as the dollar's decline presents a puzzling scenario amidst rising yields. Experts continue to debate the underlying causes of these trends, with some attributing the yield increase to domestic fiscal challenges rather than foreign selling of Treasuries.