The Economic Information Daily reported on the 25th that U.S. Treasury yields have continuously hit new highs, and Wall Street is gradually realizing that this is not merely a bond market downturn, but possibly a fundamental structural shift.

Multiple factors are driving up the cost of U.S. government financing. Oil prices reaching $100 per barrel, the investment boom in the field of artificial intelligence, and the massive U.S. fiscal deficit are all giving the already hawkish Federal Reserve more reasons to raise interest rates, further intensifying the selling pressure on the bond market.

Currently, almost all U.S. benchmark yields are near or above 5%. Looking at a longer cycle, the sustained rise in yields presents Wall Street with a reality: 5% could become the norm for yields, or even the lower bound.

Treasuries are a benchmark for global debt costs; rising interest rates directly impact consumers, businesses, and governments. Borrowers face pressure, the economy risks losing momentum, and the multi-year upward trend in U.S. stocks could also reverse.

Reinhart, chief economist and macro strategist at BNY Mellon, said: "The past few years were the abnormal period." Vanguard Group portfolio manager Semartinez said: "We have entered a new cycle."(rc)