The bond sell-off has caused anxiety in markets, but some analysts say it is not necessarily reason to panic. They argue that the US economy is strong enough to withstand higher rates, which explains why the stock market remains near records despite yields spiking to multi-decade peaks. The sell-off in US Treasurys has sent key US bond yields to 20-year peaks, with the 10-year Treasury yield recently surging to its highest level since the Great Financial Crisis and the 30-year bond yield rising past 5.5%, the highest since 2004. Historically, higher yields have signaled tighter financial conditions and increased pressure on stock prices, with 5% being a critical threshold.
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