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 to multiyear highs. Yields rise as bond prices fall, so the move reflects investors demanding more compensation to hold government debt.

Several forces appear to be at work. Oil prices have been marching higher, adding to inflation concerns, while jitters about artificial intelligence have unsettled parts of the equity market. With investors looking elsewhere for safety, Treasuries are not drawing the haven demand they might typically attract during periods of stress.

The 5% threshold matters because the 10-year yield anchors many consumer and corporate borrowing costs, from mortgages to business loans. For markets, the key question is whether this represents a brief spike or the start of a more sustained repricing of interest-rate expectations. Investors will be watching upcoming inflation data, oil's path and Federal Reserve commentary for signals on whether yields hold at these levels or retreat.