US stocks ended lower on Monday, September 28. The Dow fell about 0.7%, the S&P 500 lost 0.8%, and the Nasdaq declined 0.9%. At the same time, the yield on the 10-year US Treasury note climbed to 5.23%, its highest level since 2007.
Investors were weighing higher oil prices and uncertainty in the Middle East alongside the rising yield. When government bonds offer higher returns, they can also become more attractive compared with shares. Treasury yields matter beyond markets, too: they influence the cost of some longer-term borrowing, including mortgages, although lenders set their rates using several factors.
The daily market move does not tell us where rates or share prices will go next. It does show why a sharp change in borrowing costs can affect many parts of the economy at once.