The Unrelenting Bond Selloff Puts the 10-Year Yield on the Cusp of 5%

10-year Treasury yield approaches 5% on sustained bond selloff, raising recession and equity downturn risks.

· Source: wsj.com

Summary

The 10-year Treasury yield is trading near 5% as the bond market continues to sell off, reflecting a repricing of inflation expectations, Fed policy expectations, or fiscal concerns. Rising real rates threaten to compress equity valuations, decelerate economic activity, and create volatility in risk assets. Traders should monitor whether this yield breaks above 5% as a key technical level and watch for correlation breakdown between stocks and bonds.

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