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.
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