Treasury yield crosses 5% for the first time since 2007

Stocks dipped Friday as traders focused on a recent run higher in the 10-year Treasury yield.The Dow Jones Industrial Average lost 173 points, or 0.5%. The S&P 500 and Nasdaq Composite each shed 0.6%.

The yield on the benchmark 10-year Treasury crossed 5% for the first time in 16 years on Thursday. The 10-year yield hit 5.001% around 5 p.m. ET, the first time it has traded above that level since July 20, 2007 — when it yielded as high as 5.029%. It was last trading at 4.929%.

“The stock market is watching the bond market and doesn’t like what it sees,” said David Donabedian, chief investment officer of CIBC Private Wealth Management. “Yields are rising, even with the relatively good news about inflation. This is the primary reason the stock market has been weak.”