The 10-Year Treasury Yield Is Near 5%. What It Means for Stocks, Gold, and More.

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Investors continue to push bond yields higher as the strength of the economy surprises.

Bonds are supposed to be boring. But there is nothing dull about a 5% yield on the benchmark 10-year U.S. Treasury note, a psychologically significant level that the bond briefly touched in overnight trading. It is on the cusp of being breached in regular U.S. trading for the first time since 2007.The 10-year yield was down 0.05 percentage point on Friday, to 4.94%, after closing at 4.99% on Thursday then briefly ticking above 5% in overnight trading. The yield has climbed 1.

Yields elsewhere on the Treasury curve have also been rising lately, but the 10-year tends to get the most attention. The two-year Treasury note’s yield was 5.11% on Friday, while the 30-year bond yield hit 5.06%. Higher bond yields mean more competition for stocks as an attractive alternative in investors’ portfolios. They weigh most on the high-multiple shares of growth companies that are expected to generate more of their profits in the future, like many tech companies.

 

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Stocks face growing headwinds as 10-year Treasury yield sits on edge of 5%Vivien Lou Chen is a Markets Reporter for MarketWatch. You can follow her on Twitter vivienlouchen.
Source: MarketWatch - 🏆 3. / 97 Read more »

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.
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