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 indicated more rate rises are coming. Stocks slumped. Investors are concerned over further rate hikes as the Fed moves to cool inflation.
Higher bond yields weigh on American consumers. Yields could drop as quickly as they climbed. The 5 percent mark matters for the economic outlook. It stands as a critical gauge for markets. This level is critical.