The yield on 10-year US Treasury bonds — the most widely watched interest rate in the world. It represents what the US government pays to borrow money for 10 years.
It is the global benchmark rate. Mortgage rates, corporate borrowing costs, and equity valuations all move with it. When it rises sharply, risk assets typically fall.
Rising yield = tighter financial conditions, stronger dollar, pressure on equities. Falling yield = looser conditions, flight to safety. Above 5% is historically restrictive.