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 signaled more rate rises are coming. Stocks dropped. Investors are worried about further rate hikes as the Fed moves to cool inflation.
Higher bond yields weigh on American consumers. Yields could fall as quickly as they climbed. The 5 percent mark is important for the economic outlook. It stands as an important signal for markets. This level is critical.