Treasury Yields Soar Above 5% Ahead of Fed Meeting

The 10-year Treasury yield has broken through the key psychological level of 5% for the first time since October 2023, ahead of this week's Federal Reserve meeting. Benchmark 10-year Treasury yields reached as high as 5.0142%, but fell back below 5% after the initial surge.

The milestone is seen as a significant threshold that could ripple through the U.S. economy and threaten the bull market in stocks by denting the relative appeal of U.S. equities, according to Molly Brooks, U.S. rates strategist at TD Securities.

Brooks noted that holding below 5% would signal investor demand and a resistance level at that threshold, while blowing through it could indicate investors are clearly worried about the long end and may see rates move even higher from here.