The rise in long-term Treasury yields has exposed a divide between Federal Reserve policymakers and Wall Street over what is driving borrowing costs higher. The 10-year Treasury yield reached 4.814% this week, its highest level since November 2023, before easing, while the 30-year yield stood at 5.12%, also below its earlier weekly level. New York Fed president John Williams, who is also chair of the Federal Open Market Committee, attributed the move mainly to a strong U.S. economy and investment in artificial intelligence, data centers and technology. Fed Chairman Kevin Warsh has likewise cited capital business investment, resilient consumer spending and strong profits, while former International Monetary Fund chief economist Ken Rogoff said yields may have reset to normal levels after the era of secular stagnation (a prolonged period of weak growth expectations). Traders and economists instead emphasize stubborn inflation, oil prices above $95 a barrel after renewed military strikes in the Middle East, fiscal deficits, the more than $40 trillion U.S. government debt burden, a weaker dollar and heavy technology-company bond issuance to fund AI infrastructure. FedWatch Advisors chief investment officer Ben Emons said competition from Big Tech borrowing is the largest factor and predicted the 10-year yield could end the year well above 5%, with the 30-year at 5.5% or higher. Fed governor Chris Waller highlighted 6% fiscal deficits, or 3% after adjusting for inflation, and uncertainty over the dollar's reserve-currency status as reasons investors may demand higher term premium (extra yield for holding longer-term debt).