Five-Year Treasury Yield Tops 5% for First Time Since 2007
The 10-year yield briefly reached 5.13%, while a weak $70 billion five-year note auction pushed borrowing costs higher across the curve.
U.S. Treasury yields surged Wednesday, with the five-year rate breaking above 5% for the first time since 2007 as stronger economic data and a weak auction intensified bond-market selling.
The 10-year yield briefly rose nearly 17 basis points to 5.13%, its highest level since 2007. The 30-year yield reached about 5.4%, also a 2007 high.
The Treasury sold $70 billion of five-year notes at a 5.033% yield, more than 3 basis points above the pre-auction expectation. The auction was the second-worst for that maturity since 2018 based on the available record.
Interest-rate swaps fully priced three 25-basis-point Federal Reserve rate increases over the next year and showed substantial hedging for a fourth increase. The S&P 500 fell 0.8% as the Treasury selloff added pressure to U.S. stocks.
