10-year Treasury hitting 5% — finally worth buying?

There's been endless noise about bonds lately. Most of it wrong. People confuse how yields actually get set, how duration works, how bonds function in a real portfolio versus theory.

At 5%, the 10-year starts looking interesting again from a pure valuation standpoint. Real yield is positive, you're getting paid to wait, and if rates stabilize or fall from here, you get price appreciation on top of coupon.

But context matters. If you think inflation stays sticky or the Fed holds longer than consensus expects, that 5% might not compensate you for duration risk. Conversely, if recession fears materialize or growth slows more than priced in, locking in 5% today could look smart six months out.

Bonds aren't dead. They're just not free money anymore. Which is actually healthier for markets long-term. The key is understanding what you're buying and why — not chasing narratives about 'bond vigilantes' or 'the end of the 60/40.'

Yields are set by supply, demand, inflation expectations, and Fed policy. Nothing magical. Just math and market clearing prices.