The 10-year Treasury yield reached 5 percent on Wednesday. That is a major level for the US economy and markets. The Federal Reserve has raised interest rates. It signaled further hikes are coming. Stocks dropped. Investors are concerned over more tightening as the Fed tries to slow inflation.
Higher bond yields weigh on American consumers. Yields could retreat as fast as they rose. The 5 percent mark matters for the broader economy. It stands as a key marker for markets. This level still matters.