LONDON, Oct 23 Reuters The yield on the benchmark 10year U.S. Treasury note rose above 5.0 on Monday, hitting the July 2007 milestone that it briefly attempted to scale last week.

The runup in yields on the 10year Treasury bond, seen as a safehaven in times of economic uncertainty and a benchmark for borrowing costs around the world, has been driven by investors pricing in stronger U.S. growth as well as fiscal slippage.

Yields at the longend rose quickly after Federal Reserve Chair Jerome Powell said last week that the U.S. economy39;s strength and hot labour market might warrant tighter financial conditions.

The 10year yield touched 5.004 on Monday, up around 8 basis points bps on the day.

It was briefly bid at a 16year high of 5.001 on Thursday. It has risen 160 basis points since midMay.

Alongside the Feds hawkishness, worries over fiscal matters have caused term premiums on the curve to rise.

Treasury borrowing costs have climbed, and a divided Congress has bickered over next year39;s spending bills while using stopgap measures to avert a shutdown of government operations.

In the background, the Fed is reducing its bond holdings.

In the year to September 2023, the U.S. government posted a 1.695 trillion budget deficit, a 23 jump from the prior year and the largest since a COVIDfueled 2.78 trillion gap in 2021.

The deficit comes as President Joe Biden is asking Congress for 100 billion in new foreign aid and security spending, including 60 billion for Ukraine…