A five handle on the ten-year, and gilts at a 28-year high

Five per cent, and the day after

The US 10-year Treasury yield crossed 5% and then hovered there, closing near that level on Tuesday at the highest point since 2007, according to the Wall Street Journal's coverage. The Dow fell. Stocks declined through the session as investors waited on the Federal Reserve, and the selling was not confined to Treasuries: the Journal described a deepening global bond selloff, with 10-year yields in several markets at multiyear highs.

Wall Street spent the day arguing about what the number means. One piece framed it as the prospect of a new era; another asked what comes next now the threshold has been crossed; a third made the case that yields could come down as fast as they have climbed. All three were published within roughly a day of each other, which gives a fair sense of how settled the question is.

Attention also turned to who is holding the paper. The Journal reported that hedge funds face scrutiny over their growing Treasury footprint, and in a separate article called them the wild card in a turbulent bond market.

At the Fed, CNBC set out the vote count ahead of an expected interest rate increase, describing a tough battle for Warsh. The South China Morning Post, writing on what it called a "super-central-bank week", said a US rate rise now appears a done deal in the eyes of investors. The BBC, meanwhile, turned to the domestic side of higher yields, with a video on how they reach American consumers through the cost of borrowing.

Gilts, the Bank, and the £120bn bill

UK borrowing costs hit a 28-year high, This is Money reported, with investors now pricing as many as five rate rises by the end of 2027 as energy bills push inflation up. City A.M. reported that the Bank of England is under pressure to raise rates or risk "losing credibility".

The Bank's balance sheet has become the other front. The Guardian reported calls, including from John Healey, for the Bank to slow or halt its bond sales in order to bring down UK borrowing costs. The paper's editorial line went further, putting a £120bn figure on the cost of the programme to the public finances and describing the arrangement as power without accountability.

Fiscal policy drew its own fire. This is Money carried a top economist's attack on Andy Burnham — "a tax and spend socialist government with better TikTok videos" — alongside a call for spending cuts to calm the bond market.

Tuesday's labour market data gave the week its domestic anchor. Wage growth slowed to 3.9%, which under the triple lock points to a state pension of a little over £13,000 a year, as the BBC and Sky News both reported. Sky noted that most recipients will be taxed on it; Downing Street said retirees with no other income would not pay tax on the new amount, according to the Guardian. Elsewhere in the household accounts, Sky reported grocery price inflation ticking up, with shoppers hunting value.

Away from the yield curve

In Frankfurt, Euronews reported that ECB staff have raised stability concerns about rumours that Christine Lagarde may leave the presidency early. The same outlet noted the ECB is inviting Europeans to vote on future banknote designs, with the deadline approaching.

Germany is seeking guarantees from UniCredit over its pursuit of Commerzbank, Euronews reported — the latest turn in a takeover that has been contested on political as much as financial grounds. Canada, for its part, spent the day selling itself to investors as a haven "in a very uncertain world".

London looked calmer than the gilt market might suggest. City A.M.'s market preview had the FTSE 100 set to edge up, despite continuing pressure on oil.

Company news was thin but varied. City A.M. asked whether the cautious Lord Wolfson can keep surprising Next shareholders, and reported that Nick Train's firm has begun a buyback to support its flagging investment trust. Dazn's chief executive, Shay Segev, said the company is getting "IPO ready" after swinging into profit and making senior hires. In Asia, the South China Morning Post reported that Southeast Asian buyers have emerged as the largest non-local investors in Hong Kong commercial property.