The US stock market is experiencing a crisis of confidence after the 10-year Treasury yield surpassed 5%, exceeding the outer limit of an entire generation’s experience with interest rates. This sudden spike in yields has sent shockwaves through financial markets, prompting concerns among investors.
Experts attribute the sharp selloff to a surge in bond prices over the past week, which has led to a rapid increase in US Treasury yields. The 10-year note rate has soared, making investors increasingly nervous about the potential impact on their portfolios.
Markets are now bracing for an extended period of high interest rates, which could lead to increased borrowing costs and reduced stock market performance. As a result, investors are scrambling to adjust their strategies and protect their wealth amid this uncertainty.
Source: https://www.marketwatch.com/story/the-10-year-treasury-yield-is-nearing-5-again-why-stock-market-investors-are-freaking-out-e0b44802