The 10-year Treasury yield touched 5 percent on Wednesday. That is a critical level for the US economy and markets. The Federal Reserve has increased interest rates. It signaled further hikes are coming. Stocks dropped. Investors fear more tightening as the Fed works to curb inflation.
Higher bond yields pressure American consumers. Yields could retreat as fast as they rose. The 5 percent mark is important for the broader economy. It remains a critical gauge for markets. This level is critical.