10-Year Treasury Yield Crosses 5% for First Time in 16 Years; Global Economy's Twin Engines Rev Up; Markets React to Federal Reserve Chairman's Remarks

Federal Reserve's persistent measures against high inflation send 10-year Treasury yield over 5%, affecting rates on various consumer loans. The U.S. and China show stronger-than-expected economic growth defying recession fears despite skyrocketing U.S. bond yields.

The yield on the 10-year Treasury crossed 5% for the first time in 16 years due to the Federal Reserve's measures against high inflation, impacting rates on mortgages, student debt, and auto loans.
Investors are demanding a higher return to lend their money to the U.S. government due to rising U.S. government debt—part of the reason for the spike in Treasury yields.
Savers stand to benefit from higher yields, with high-yield savings accounts, certificates of deposits, and money market accounts now paying over 5%—the highest in over 15 years.
The U.S. and China, the world's two most powerful economic engines, show stronger-than-expected growth, suggesting incorrect predictions of weaker growth and probable U.S. recession.
Federal Reserve Chair Jerome Powell's comments on the possible need for sustained high interest rates led to significant market volatility.