The 10-year US Treasury yield hit a new high since 2007. Industry veterans said that for investors, the question that the market is increasingly concerned about is not whether a yield of 5% or more will immediately cause “problems” in some areas, but where the pressure will eventually show if interest rates remain at this level for a long time. Market experts also pointed out that a benchmark yield of 5% or more may gradually reveal vulnerabilities in the financial system, as higher borrowing costs will gradually be transmitted to housing, commercial real estate, and high-debt companies. Jack Ablin, chief investment officer at Cresset Capital, said, “It's important to note that a 5% yield won't break anything the day it is reached. The real problem will come after 12 to 18 months, when businesses and borrowers will have to refinance at the new interest rate.”

The 10-year US Treasury yield hit a new high since 2007. Industry veterans said that for investors, the question that the market is increasingly concerned about is not whether a yield of 5% or more will immediately cause “problems” in some areas, but where the pressure will eventually show if interest rates remain at this level for a long time. Market experts also pointed out that a benchmark yield of 5% or more may gradually reveal vulnerabilities in the financial system, as higher borrowing costs will gradually be transmitted to housing, commercial real estate, and high-debt companies. Jack Ablin, chief investment officer at Cresset Capital, said, “It's important to note that a 5% yield won't break anything the day it is reached. The real problem will come after 12 to 18 months, when businesses and borrowers will have to refinance at the new interest rate.”