US 10-year Treasury yield tops 5% for first time since 2023

A deepening selloff in US Treasuries pushed the 10-year yield above the key psychological threshold of 5 percent Monday (local time).

The yield on the 10-year US Treasury note stood at 5.012 percent as of 10:21 a.m. Eastern time, according to electronic trading platform Tradeweb — up 2.9 basis points from the previous session. One basis point equals 0.01 percentage point.

Bond yields move inversely to prices, so the rise in the yield reflects a decline in bond prices.

The 10-year yield has not crossed the 5 percent mark since October 2023, making this only the second time it has done so since 2007, just before the global financial crisis.

The 5 percent level is widely regarded in financial markets as a critical psychological threshold.

A sustained move above that level could diminish the relative appeal of risk assets such as shares and significantly increase borrowing costs for companies.