Lates News

According to CNBC, the 10-year U.S. Treasury yield has hit a new high since 2007. Veteran industry figures say that for investors, the increasingly pressing question is no longer whether a yield above 5% will immediately cause "problems" in certain areas, but where pressure will ultimately surface if rates remain at this level for an extended period. Market experts also point out that a benchmark yield above 5% could gradually expose vulnerabilities in the financial system, as higher borrowing costs slowly pass through to housing, commercial real estate, and highly indebted 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's reached. The real problems will emerge in 12 to 18 months, when companies and borrowers have to refinance at the new rates."