The 10-year Treasury yield climbed to 5 percent on Wednesday. That is a major level for the US economy and markets. The Federal Reserve has raised interest rates. It suggested further hikes are coming. Stocks slumped. Investors fear further rate hikes as the Fed tries to slow inflation.
Higher bond yields pressure American consumers. Yields could drop as quickly as they climbed. The 5 percent mark matters for the broader economy. It stands as a critical gauge for markets. This mark still matters.