How bond yields above 5% are unsettling investors


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Long bond yields crossing the threshold of 5% is starting to sound alarm bells for investors, and not just those in the U.S. What’s discomforting them is that yields are gradually rising


despite signals of lower growth in the US. A chart provided by Robin Brooks, senior fellow at The Brookings Institution, highlights the growing dislocation between rising yields and positive


data surprises. Typically, data releases suggesting economic weakness, should lead to firmer bond prices and lower yields, but this relationship has broken down in 2025.