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

The 10-year Treasury yield briefly crossed 5% on Monday, a level last seen in 2007, extending a bond-market selloff that has pushed borrowing costs higher across the economy. 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 climbing, which can feed inflation expectations and complicate the outlook for interest rates. At the same time, unease around artificial intelligence has added a note of caution to markets, while some investors have shifted toward other perceived havens. Together, these factors have deepened the pressure on Treasurys.

The 5% mark 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 threshold or retreat, how oil prices behave, and whether upcoming inflation and labor data shift rate expectations. For now, the move signals that the bond market is repricing risk rather than signaling calm.