U.S. 10-Year Treasury Yield Briefly Tops Key 5% Level

The interest rate on a key U.S. government bond briefly rose above 5%.

This was the first time it had reached that level since October 2023.

Bond yields often rise when investors expect interest rates to go up.

Recent inflation and job data made traders more confident that the Federal Reserve will raise rates.

Higher oil prices also created worries that inflation could worsen.

The yield dropped back below 5% later in the day.

Some investors see 5% as a level where bonds become attractive to buy.

Others worry that yields could rise even further.

Higher bond yields can make stocks less appealing and increase borrowing costs across the economy.