U.S. 100 dollar notes are seen at a bank in this picture illustration in Seoul

U.S. 100 dollar notes are seen at a bank in this picture illustration in Seoul September 20, 2011. REUTERS/Lee Jae-Won/File Photo Purchase Licensing Rights, opens new tab

Heavy debt ​issuance, including by companies financing record AI-related spending, has added ​to the move by creating a larger supply of bonds for potential ‌buyers ⁠to choose from and limiting the prices that sellers can demand.

Traders are also focused on the deteriorating U.S. fiscal trajectory, with some arguing that Washington's widening deficits and rising ​debt load ​require a higher ⁠yield premium to keep drawing buyers. A still-resilient U.S. growth outlook has also underpinned the ​move.

Some analysts view 5% on the ​10-year as ⁠a critical line that could make bonds more competitive with stocks, potentially pulling dollars out of equities. Higher Treasury yields ⁠also flow ​through to the broader economy through ​costlier mortgages, auto and consumer loans, and more expensive corporate and municipal borrowing.

Reporting ​by Karen Brettell; Editing by Nick Zieminski and Andrea Ricci