10-year Treasury yield tops 5% for the first time 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 bond-market selloff that has been building for months. Yields rise as bond prices fall, so the move reflects investors demanding more compensation to hold longer-dated government debt. Several forces are cited behind the push: oil prices marching higher, growing jitters about artificial intelligence, and investors looking elsewhere for safety.

The 5% mark matters because the 10-year yield is a benchmark that feeds into borrowing costs across mortgages, corporate credit and consumer loans, and it anchors how other assets are valued. When the risk-free rate climbs, the appeal of riskier holdings can shift, which helps explain why the threshold draws attention well beyond the Treasury market.

What to watch from here: whether yields hold above or retreat below 5%, how oil prices and AI-related sentiment evolve, and whether the move reflects durable expectations for rates and growth or a shorter-lived repricing.