The 10-year Treasury yield touched 5 percent on Wednesday. That is a critical level for the US economy and markets. The Federal Reserve has increased interest rates. It indicated further hikes are coming. Stocks dropped. Investors are worried about more tightening as the Fed moves to cool inflation.
Higher bond yields pressure American consumers. Yields could drop as fast as they rose. The 5 percent mark is a key signal for the economy. It remains a key marker for markets. This level still matters.