The 10-Year Treasury Yield Just Hit the Significant 5% Threshold. Here's What That Means for the Stock Market.
The benchmark treasury yield is as high as it's been in nearly 20 years. Should you be worried?
Overview
The 10-Year treasury yield briefly hit 5% on Monday, peaking at 5.012%, its highest level since 2007.
Rising Treasury yields reflect, above all else, that investors see inflation as entrenched over the longer term and that the Federal Reserve will have to keep the Fed funds rate elevated to rein it in.
Details
Factors like sustained inflation above the Fed's 2% target for more than five years, elevated oil prices from the conflict in the Middle East, signals from new Fed Chair Kevin Warsh, and the ballooning national debt are all contributing to rising Treasury yields.
Source
Originally published at www.fool.com.
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