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The U.S. bond market was significantly affected, with the 10-year Treasury bond yield reaching 5% for the first time since 2023. This rise was fueled by increasing oil prices, fears of inflation, and escalating global borrowing costs. Crossing this level serves as a warning sign, as it could threaten the sustainability of the U.S. budget and stock markets, while also putting pressure on companies and households due to higher borrowing expenses. This led to a wave of bond sell-offs and rising yields, with UK and German bonds also reaching multi-year highs. This development raises concerns about potential disruptions in financial markets and is indicative of worsening economic expectations driven by higher financing costs both locally and globally.
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