The 10-Year Treasury Yield Just Topped 5% for the First Time Since the Great Recession. History Says It Could Mean Trouble for the Stock Market.
The 10-year U.S. Treasury yield just topped 5% for the first time in 16 years, according to the Wall Street Journal. Rising bond yields correspond to falling bond prices, so upward momentum in Treasury yields points to selling pressure in the market -- and that pressure has been persistent.
The 10-year U.S. Treasury yield has climbed 110 basis points year to date, 350 basis points since the beginning of 2022, and 400 basis points since the beginning of 2021. Other Treasuries have followed a similar trajectory, and the broader Treasury market is on pace for its third consecutive annual loss, according to Bloomberg.
Investors need to understand why that is happening, and what it could mean for the stock market. Here are the details.
Source Fool.com
