High Treasury yields aren't breaking the stock market yet, economists say

Treasury yields have risen to near 5%, with the 10-year yield reaching 4.97% late Thursday. This increase follows a monthslong bond sell-off driven by higher oil prices, persistent inflation, heavy government borrowing, and expectations that the Federal Reserve will maintain higher interest rates for longer. Despite these higher yields, economists at TS Lombard believe they are not yet sufficient to disrupt the stock market. An AI spending boom, with companies investing billions in infrastructure, is helping to keep stocks afloat. The bigger risk may be rising corporate borrowing, which could lead to further Fed rate hikes.

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