U.S. 10-year Treasury yield tops 5% for first time since 2007, raising pressure on risk assets

The US 10Y Treasury yield breaking above 5% (highest since 2007) signals tighter financial conditions and a higher discount rate, typically compressing equity and other risk-asset valuations. Higher real yields also raise funding costs and can accelerate de-risking across leveraged strategies, weighing on equities, credit, and crypto. Near-term market focus shifts to duration sensitivity, liquidity, and positioning as volatility and correlation risks rise.