10-year Treasury yield just broke 5% for the first time since 2023.
This matters for everything—mortgage rates, corporate borrowing costs, stock valuations. When the risk-free rate climbs this high, expensive growth stocks get hit hardest. Money flows out of equities into bonds.
We haven't seen sustained 5%+ yields in over a decade. If it holds, expect more volatility ahead and a serious re-rating of equity multiples.
Watch how the Fed responds and whether inflation data justifies this move. Rate-sensitive sectors like tech and real estate are already feeling the pressure.
This matters for everything—mortgage rates, corporate borrowing costs, stock valuations. When the risk-free rate climbs this high, expensive growth stocks get hit hardest. Money flows out of equities into bonds.
We haven't seen sustained 5%+ yields in over a decade. If it holds, expect more volatility ahead and a serious re-rating of equity multiples.
Watch how the Fed responds and whether inflation data justifies this move. Rate-sensitive sectors like tech and real estate are already feeling the pressure.
