US 10-Year Yield Breaks Above 5%: Markets on Alert

The U.S. 10-year Treasury yield has climbed above 5%, hitting its highest level since 2007 and putting global markets back on alert.

The move reflects growing concerns over inflation, government borrowing and the outlook for U.S. interest rates.

Higher Treasury yields can make U.S. assets more attractive while increasing borrowing costs across the economy. They can also put pressure on risk-sensitive assets, including stocks and some emerging-market currencies.

For traders, the key question is whether yields can stay above the 5% mark.

If they do, markets could face renewed pressure as investors adjust to a higher-for-longer interest-rate environment.