10‑year Treasury yield closed above 5% on Sept 15, its first such close since 2007, amid a Fed rate hike and Treasury buybacks that have not curbed its 21% rise over the past year.
On Sept 15 the U.S. 10‑year Treasury yield closed at just over 5%, the first time it has closed at that level since 2007; an intraday rise above 5% also occurred in Oct 2023. The yield has risen about 21% over the prior 12 months as of Sept 17.
The Federal Reserve, led by Kevin Warsh, raised the federal funds rate by 0.25 percentage point on Sept 16 to a target range of 3.75%‑4%, marking its first hike since July 2023. Treasury Secretary Scott Bessent has initiated buybacks of long‑dated Treasuries, a historically uncommon step that, according to the report, has not yet reduced the yield.
Higher yields are noted to pressure equity valuations, especially for high‑growth stocks, and could shift capital toward fixed‑income assets. The article also suggests that long‑term investors may choose to ignore short‑term Treasury market movements when allocating capital.
The report does not provide definitive guidance on future yield movements or portfolio outcomes, noting that further developments remain uncertain.