U.S. 10-Year Treasury Yield Reaches 4.8% on Monday in Bid to Top 5%
Rising borrowing costs are testing market limits, with Albert Edwards highlighting valuation risks as investors weigh high stock returns against tight credit spreads.
The U.S. bond selloff pushed the 10-year Treasury yield toward 5% on September 8, 2026. The figure hit 4.8% on Monday, marking its highest level since October 2023. Strong economic growth and heavy investment in artificial intelligence data centers are currently offsetting some pressure from rising rates. However, higher borrowing costs pose risks for refinancing debt, funding acquisitions, and capital expenditure. Corporate earnings could face strain if spending increases outweigh the benefits of cheaper debt or stronger fixed income assets. Albert Edwards of Societe Generale noted that the ratio of the 30-year Treasury yield to stock dividend yields remains at its highest level since the dot-com bust of 2000. He argued that equities trade at elevated valuations which compete more directly with fixed income as rates climb.
