The 10-year U.S. Treasury yield climbed above 5% on Tuesday, reaching its highest level since 2007.

The increase came as investors prepared for the Federal Reserve’s upcoming interest-rate decision and remained concerned about persistent inflation.

Rising oil prices and expectations of tighter monetary policy have also contributed to higher Treasury yields.

Higher Treasury yields can increase borrowing costs across the economy, including for mortgages, business loans and other forms of debt, CNBC has reported.

The move comes as investors watch the Fed closely to determine whether interest rates will remain elevated and how that could affect the economy and financial markets.