US 10-Year Treasury Yield Hits 5%: Highest Level Since 2023

The U.S. 10-year Treasury yield reaching 5% could create valuation pressure, especially for growth stocks, and may trigger profit-taking after GOOGL's strong 4.4% rally in the last 24 hours. Although RSI14 approaching the overbought threshold at 68.75 and MACD being above its signal indicate strong short-term momentum, a high interest rate environment could negatively impact tech stocks by increasing discount rates. The price trading above SMA20 and SMA50 is technically positive, but the news flow heightens the risk of a short-term correction. Nevertheless, the impact may be limited as it is uncertain how much the market has priced in the rate hike. Therefore, I expect a slight downward pressure in the 1-3 day outlook, but it is early to give a definitive sell signal due to strong momentum.

The US 10-year Treasury yield reaching 5% reflects bond selling and expectations of interest rate hikes, which typically supports the DXY. The DXY is currently at 99.51, above its 20-day and 50-day simple moving averages, with an RSI of 59, not yet approaching overbought territory, indicating that upward momentum is maintained. The MACD is just above its signal line, but the gap is very small, suggesting that the bullish trend requires additional buying for confirmation. The news could boost dollar demand due to the interest rate differential advantage, but the potential selling pressure from rising yields on stock markets could also dampen risk appetite and trigger safe-haven demand for the dollar. In the short term (1-3 days), I expect a moderate upward trend in the DXY, but the 100 level should be watched as psychological resistance.

The US 10-year Treasury yield reaching 5% is a strong factor putting pressure on gold prices. GLD's last close was 4289.06, down 1.38% in 24 hours, with RSI14 at 34.76 approaching oversold territory but not yet giving a reversal signal. MACD is negative and below the signal line, confirming downward momentum. In the short term, rising bond yields could increase selling pressure on gold, but the low RSI level also brings the possibility of a limited rebound. Nevertheless, the overall outlook is bearish.