The U.S. 10-year Treasury yield has surged past the 5% mark for only the second time since the era preceding the Great Financial Crisis. After climbing more than 100 basis points in just six months, the bond market is hovering at a critical level and searching for direction. In this update, Jim Iuorio of JI Financial Strategies LLC breaks down the three primary catalysts driving yields higher and explains what retail traders should watch next. First, economic optimists note the heavy opportunity cost of holding bonds while equities—fueled by massive artificial intelligence infrastructure investments—continue delivering robust returns. Capital is actively flowing toward tech growth rather than fixed income. Second, inflation risks are resurfacing. Recent supply disruptions tied to the Iranian conflict have sent WTI crude oil prices surging back toward the $100 level. If these energy costs bleed into the broader economy, long-term bonds lose their appeal. Finally, the fiscal picture remains a persistent headwind. National debt and deficit concerns have compounded as the market digests the expanded costs of a prolonged overseas conflict. Learn more: https://www.cmegroup.com/markets/interest-rates.html #interestrates #yields