Bond market sees 5% yields return as new norm for investors

bond market: The bond market is the global marketplace for issuing and trading debt securities, including government and corporate bonds. It is relevant here because a broad rise in U.S. Treasury yields has created a higher-return environment that differs sharply from the low-yield conditions familiar to many newer investors. Drivers: Recent bond-market selling has been associated with resilient economic data, persistent inflation concerns, elevated oil prices, large government deficits, and heavy debt issuance. Yield environment: U.S. Treasury yields across most maturities have moved above the psychologically important 5% threshold, with the exception of the two-year note. Market significance: The 10-year Treasury yield recently reached its highest level since 2007, increasing borrowing costs and making bonds more competitive with equities.