Elevated Treasury yields are signaling a strong economy, stubborn inflation, and rising national debt costs, complicating both Federal Reserve policy and Treasury financing. This highlights the policy tension between Fed Chairman Kevin Warsh, who views the 10-year Treasury as a vital information source, and Treasury Secretary Scott Bessent, who is willing to intervene when he believes markets are in disequilibrium. On Thursday morning, the 2-year Treasury yield rose 10 basis points to 4.87%, while the 10-year Treasury rose 17 basis points to 5.12%, trading near multi-decade highs.