The 10-year Treasury yield reached 5 percent on Wednesday. That is a major level for the US economy and markets. The Federal Reserve lifted interest rates. It suggested further hikes are coming. Stocks slumped. Investors fear additional increases as the Fed moves to cool inflation.
Higher bond yields weigh on American consumers. Yields could fall as fast as they rose. The 5 percent mark matters for the economic outlook. It stays an important signal for markets. This level remains crucial.