Markets Blinked at 5% US 10-Year Yield Highest Since 2007.

US 10-Year Yield Rises to Highest Since 2007 

The latest leg of the move followed an increase in global oil prices as risks to Middle East supplies grow.


The drop in US government bonds is part of a broader global move that’s seen Germany’s 10-year yield rise to the highest since 2009, while Australia’s equivalent rate touched a 15-year high.

Bloomberg 15 September 2026

https://www.bloomberg.com/news/articles/2026-09-15/us-10-year-treasury-yields-rise-to-highest-level-since-2007


Markets Blinked at 5%

There have been fears that a 5% yield on Treasuries, the most important number in global finance, could be a “tipping point.” 

The tipping point, made famous by a book by Malcolm Gladwell, 

https://www.youtube.com/watch?v=RmXrwKydM9k

The tipping pointis an infuriating concept, because it’s impossible to know in advance what point will cause a market to tip.

But in this case, it looks like another Gladwell tome might be more relevant: Blink. 

https://www.goodreads.com/en/book/show/40102.Blink

Traders went through 5%, saw what they had done, and in the blink of an eye took it back down again.

 The subtitle of Blink is The Power of Thinking Without Thinking, which seems about right; in this case, we witnessed trading without thinking. 

A major energy shock automatically made it harder to cut rates, while the surprising intensification of the conflict in recent days has brought crude prices back above $100 per barrel.

Exclude energy, plainly driven by forces beyond the Fed’s control, and inflation was 2.5% last month, as low as it’s been since early in 2021.

Although it doesn’t feel like it, nominal gross domestic product is growing about as fast as it ever has since the 1980s. So we had better assume that this is the start of a tightening cycle.

John Authers Bloomberg 15 september 2026

https://www.bloomberg.com/opinion/newsletters/2026-09-15/markets-blinked-at-5-yields-they-ll-be-back

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