US 5-Year Treasury Yield Breaches 5% for First Time Since 2007

The front-end of the curve clearing 5% matters less for the level than for what it says about the term premium being demanded at shorter maturities, where policy expectations normally dominate. That shift feeds directly into the discount rate applied to yield-bearing real-world assets and crypto collateral, and it raises the opportunity cost of holding non-yielding positions. The open question is whether this is a positioning-driven overshoot or the start of a repricing that forces duration-sensitive allocators to reassess exposure.