Treasury yields are hovering above a critical threshold. Here's what it means for stocks

Treasury yields continued to rise sharply across the curve on Tuesday, sending the yield on the benchmark 10-year note above the closely watched 5% level. The 10-year Treasury yield added 7 basis points to 5.029% by 5 a.m. ET, while yields elsewhere on the curve rose roughly 4 to 6 basis points. Yields on the 20-year and 30-year Treasurys were last seen at 5.434% and 5.391%, respectively. Stock Chart IconStock chart iconU.S. Treasury yieldsGlobal yields followed Treasury yields higher, with government borrowing costs rising in Japan, Germany, the U.K., France, and elsewhere. Bond yields and prices move in opposite directions, with 1 basis point equating to 0.01 percentage point. The relationship between stocks and bondsWhile the moves in the bond market fueled questions about what's in store for the Federal Reserve's two-day September meeting – which begins Tuesday – they also raised concerns about the outlook for global equities. Sovereign bond yields influence borrowing costs not just for the governments that issue them, but also for consumers and businesses. They also have the potential to limit equity valuation growth and weigh on corporate earnings – but their reaction, histor...