On the eve of this week's Federal Reserve meeting, the US benchmark 10-year Treasury yield rose to a critical psychological level of 5% on Monday. For the first time in nearly three years, the market generally expects the Fed to raise interest rates to curb inflation. Last Friday's data showed that consumer prices in the US accelerated in August, which intensified market expectations that the Federal Reserve would raise interest rates to contain inflation. Tom di Galoma, managing director of Micheler Finance, said this “may be the last straw to crush a camel.” Over the past month, yields continued to rise as interest rate hikes were expected to rise, supply of corporate and government debt increased, economic growth prospects were optimistic, and concerns about America's long-term fiscal path. “Our budget, deficit, and overall debt structure continue to expand,” Galoma said. Subsequently, whether the yield on 10-year treasury bonds can stabilize at 5% will be a key litmus test for whether the economy and the stock market can support higher interest rates.

On the eve of this week's Federal Reserve meeting, the US benchmark 10-year Treasury yield rose to a critical psychological level of 5% on Monday. For the first time in nearly three years, the market generally expects the Fed to raise interest rates to curb inflation. Last Friday's data showed that consumer prices in the US accelerated in August, which intensified market expectations that the Federal Reserve would raise interest rates to contain inflation. Tom di Galoma, managing director of Micheler Finance, said this “may be the last straw to crush a camel.” Over the past month, yields continued to rise as interest rate hikes were expected to rise, supply of corporate and government debt increased, economic growth prospects were optimistic, and concerns about America's long-term fiscal path. “Our budget, deficit, and overall debt structure continue to expand,” Galoma said. Subsequently, whether the yield on 10-year treasury bonds can stabilize at 5% will be a key litmus test for whether the economy and the stock market can support higher interest rates.