US 10-Year Treasury Yield Surpasses 5% for the First Time Since 2007

The yield on the U.S. 10-year Treasury note surpassed 5% for the first time in 16 years.

On the 19th (local time), according to LSEG iBoxx and major foreign media, the yield on the U.S. 10-year Treasury note, which serves as a benchmark for global bond yields, reached 5.001% annually at 5 p.m. that day. This is the first time since July 2007, 16 years ago, that the yield on the U.S. 10-year Treasury note has risen above 5%.

The market reacted after the Chairman of the U.S. Federal Reserve (Fed) indicated that the current high interest rates would be maintained for a longer period.

Jerome Powell, Fed Chairman, said in a speech at the New York Economic Club that day, "Inflation remains high," and added, "If below-trend low growth and labor market easing are not confirmed, further tightening may be necessary." When asked if he felt the current policy was too tight, he responded, "I think I have to say no," reaffirming that additional rate hikes could be implemented at any time.