AXIOS (Neil Irwin) - Borrowing costs are surging amid Iran war
Data: Federal Reserve; Chart: Neil Irwin/Axios The Iran war is sending longer-term borrowing costs surging amid prospects for higher inflation, fewer Federal Reserve rate cuts and more federal borrowing. Why it matters: Higher rates create new pressure for an already-faltering housing sector, make the U.S. government's fiscal challenges worse and could weigh on business investment and consumers alike. - It contrasts with past geopolitical tumult, when money frequently flowed into Treasury securities as a safe haven. Driving the news: The 10-year Treasury note yielded 4.45% at around 10:30am ET, up half a percentage point from 3.96% just before the U.S. and Israeli attack on Iran. It receded some and was at 4.42% by 11:45am ET. - This…