The Globe and Mail reports in its Tuesday edition that U.S. government borrowing costs jumped above a key psychological threshold on Monday, and Canadian bond yields also rose, as surging oil prices fed into growing worries that rising inflation will lead to higher interest rates. The Globe's Andrew Galbraith writes that the yield on 10-year U.S. Treasury bonds briefly rose above 5 per cent for the first time since 2023, while the 30-year yield touched 5.385 per cent, its highest level since June, 2007. The Canadian 10-year yield rose above 3.98 per cent, its highest in nearly three years. "People who look at the markets are so hyperfocused on this number," said Pierre-Benoit Gauthier at IG Wealth. "Five per cent is kind of a psychological mark. It's a number that hits the psyche a little harder than 4.90." Rising yields put more pressure on government finances, home buyers and stock markets by raising debt service costs and affecting the valuation calculations of risky assets. "At some point the rate starts mattering not just for bondholders, but also for stockholders," he said. A recent Scotiabank analysis showed that above 5 per cent, higher U.S. Treasury yields tend to be associated with lower stock prices.