The Globe and Mail reports in its Friday, Oct. 13, edition that a relentless surge in long-term interest rates since the summer has made everything from mortgages to government borrowing more expensive. The Globe's Jason Kirby writes in the Decoder column that last week yields on long-term U.S. and Canadian government bonds surged to 16-year highs, before easing slightly this week. Some market watchers think this could be the peak yield. An Oct. 6 Reuters poll found most respondents believe long-term rates have stopped rising and that the yield on U.S. 10-year Treasury notes, an important benchmark for lending markets, will drop to 4.25 per cent by the end of the year. One reason for that optimism is the belief that steep long-term rates have taken over some of the heavy lifting from central banks in the inflation fight. As the yield on 10-year Treasury notes has soared, that has spilled over into higher costs for mortgages, auto loans and credit cards, not to mention more expensive loans for businesses. If all that kneecaps the economy, the U.S. Federal Reserve may get the cooler inflation it wants without further rate increases, as several Fed officials have noted over the past week.