Borrowing rates are rising.

For Marketplace, I'm Novosafo and for David Brancaccio.

Long-term yields on U.S. government bonds are on the upswing this morning.

The 30-year is above 5 percent after the last of Wall Street's big three credit ratings agencies downgraded U.S. sovereign debt.

Moody's pointed to persistent federal budget deficits.

I'm joined by Julia Coronado, founder and president of macro policy perspectives. Good morning.

Good morning. So what does the jump in U.S. Treasury yields tell us, particularly that above 5% yield in the 30-year

Treasury? It tells us that the United States is bumping up a particularly that above 5% yield in the 30-year treasury.

It tells us that the United States is bumping up against fiscal limits, that international

and domestic investors are starting to charge the U.S. more interest for its lack of fiscal

discipline and potentially a little bit of the policy volatility that we've

been seeing this year. And when you say policy volatility, you're referring to?

The trade wars and sort of the breakdown in the rule of law that certainly raises risks for

investors who are buying 30-year securities where the U.S.

is the other side of the transaction.

So when we see long-term U.S. debt yields rising like this, what is the impact to consumers?

It means consumers have to pay more to borrow.

So mortgage rates are going to follow the Treasury yields higher

as are rates on car loans and basically any kind of consumer borrowing. So consumers will

seal the impact. Money is more expensive. And right now, does that concern you in terms of

the U.S. economic outlook in this year, at least. Yeah, absolutely. We had come into the year

hoping for lower yields, a lot of sectors, real estate sectors, in particular, were hoping for

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