10-year Treasury yield briefly tops 5%, hitting its highest level since 2007 as bond-market selloff deepens

The 10-year Treasury yield briefly reached 5% on Monday, a level last seen in 2007, extending a deepening bond-market selloff. Yields rise as bond prices fall, so the move reflects investors demanding more compensation to hold longer-dated government debt.

Several forces appear to be at work. Oil prices have been marching higher, which can feed inflation expectations and complicate the outlook for interest rates. At the same time, jitters about artificial intelligence have added to uncertainty in equity markets, while some investors are looking elsewhere for safety rather than parking funds in Treasurys.

The 5% threshold matters because the 10-year yield is a benchmark for mortgages, corporate borrowing and equity valuations. What to watch next: whether yields hold above that level or retreat, how oil prices behave, and whether the shift in where investors seek safety persists. Together, these signals will shape how markets price risk across asset classes.