The 10-year Treasury yield climbed to 5 percent on Wednesday. That is a critical level for the US economy and markets. The Federal Reserve has raised interest rates. It indicated more rate rises are coming. Stocks slumped. Investors fear additional increases as the Fed tries to slow inflation.
Higher bond yields hit American consumers. Yields could fall as fast as they rose. The 5 percent mark matters for the broader economy. It stands as a critical gauge for markets. This threshold remains crucial.