Falling stocks, climbing mortgage rates: how 5% Treasury yields could roil markets

The yield on the benchmark 10 year Treasury - which moves inversely to prices - hit 5% late Thursday, a level last seen in 2007. Expectations that the Federal Reserve will keep interest rates elevated and mounting U.S. fiscal concerns are among the factors driving the move.

Powell also nodded to the "term premium" as a driver for yields. The term premium is the added compensation investors expect for owning longer-term debt and is measured using financial models. Its rise wasHere is a look at some of the ways rising yields have reverberated throughout markets. A stronger dollar helps tighten financial conditions and can hurt the balance sheets of U.S. exporters and multinationals. Globally, it complicates the efforts of other central banks to tamp down inflation by pushing down their currencies.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Why stock-market investors are fixated on 5% as 10-year Treasury yield nears key thresholdVivien Lou Chen is a Markets Reporter for MarketWatch. You can follow her on Twitter vivienlouchen.
Source: MarketWatch - 🏆 3. / 97 Read more »

Stock Market Today: Dow closes lower as 10-year Treasury yield flirts with 5%Stock Market Today: Dow closes lower as 10-year Treasury yield flirts with 5%
Source: Investingcom - 🏆 450. / 53 Read more »

Stock Market News, Oct. 18, 2023: S&P 500 Closes Lower, Treasury Yields Climb Above 4.9%Netflix shares rose in off-hours trading after the company said it's planning price increases
Source: WSJ - 🏆 98. / 63 Read more »