Benchmark US government bond rates spiked on Friday, driving borrowing costs to levels not seen in nearly two decades. The 10 year Treasury yield climbed back above 5%, marking its highest level since 2007, while the S&P 500 and Nasdaq closed higher. The Dow Jones Industrial Average slipped as the yield held steady above the critical 5% threshold.

This move retraced a decline from the prior day and pushed the yield back toward its local high. Market participants are monitoring the 5% mark as a decisive threshold that influences mortgage rates and corporate loan pricing across the economy.