10-Year Treasury Yield Nears 5% for First Time Since 2007, Adding Headwinds for Stocks

The 10-year Treasury yield is close to hitting 5% for the first time since 2007, making bonds more appealing vs. stocks.

Higher yields are seen as a headwind for stocks as they raise borrowing costs for companies.

The rise to 5% comes amid the worst bond bear market in almost 250 years.

Factors driving yields higher include central banks shrinking bond purchases, rising inflation, and higher interest rates.

The 5% level is seen as a psychological milestone that may eventually bring in more buyers and establish a floor under prices.