10-Year Treasury Yield Tops 5% for First Time Since 2006 as Growth, Policy, and Geopolitical Tensions Drive Rates Higher

The 10-year Treasury yield briefly went above 5% on Monday for the first time since 2006, potentially signaling it could go even higher.

Factors like stronger economic growth, the Fed's inflation focus, and increased risks like global conflict may be driving yields up.

The 10-year yield reflects assessments of the economy, policy, and long-run returns, unlike shorter-term rates driven by the Fed and hikes.

Surging Treasury issuance and fewer buyers raise concerns about debt sustainability and the neutral rate.

Since the Israel-Hamas conflict began, Treasurys haven't seen a flight to safety, with aggressive selling pushing the 10-year yield near 5%.