The U.S. bond market is having one of its worst days in more than a year as the yield on the 10-year Treasury note shot up 0.15 percentage point to 5.11%, its highest level since 2007.
The upshot will be higher borrowing costs throughout the economy if yields don’t return to their previous levels. And since bond prices drop when yields rise, anybody that owns Treasuries and other bonds will share in the pain.