Investing.com - The 10-year Treasury's flirtation with a 3% yield was something of an obsession in the financial markets, but it's not the level itself that matters. It's what happens after that.
"People are making a bigger deal out of this than they should," says Sam Stovall, chief investment strategist at CFRA Research. "If rates rise rapidly then investors could be spooked."
As yields rise, bonds become an attractive investment relative to stocks, offering investors a safer return on their money.
Higher yields also raise borrowing costs for companies and consumers alike, slowing economic growth and cutting into corporate profits.
Stovall also says that if rates rise in a gradual orderly fashion then investors are likely to take it in stride.
Frank Cappelleri, senior equity trader at Nomura Instinet says technical charts point to a high of 3.9%.
"After 40 years of declining rates, this is a historical point," he says. "It's hard to know how the market will react."