U.S. Treasury yields rose to their highest levels since 2002, with the 10-year yield topping 5.33% and the 30-year yield reaching 5.629% at the time of writing. Clocktower Group market strategist Eric Wallerstein said the bond market posed a more immediate threat than long-term concerns about artificial intelligence. Veteran investor Peter Schiff highlighted the potential fiscal burden of financing more than $40.1 trillion in national debt at higher rates, estimating annual interest costs of $2.14 trillion. IMF Communications Director Julie Kozack said global bond markets were functioning in an orderly manner, while economist Mohamed El-Erian said the unusual reassurance risked creating more questions. El-Erian attributed the yield spike primarily to a widening gap between rising Treasury supply and weaker demand from traditional long-term buyers, with hedge funds playing a growing role. Fidelity Investments Director of global macro Jurrien Timmer said higher yields typically weigh on stock valuations, though strong earnings growth could offset some of the pressure. If the 10-year yield reaches 6%, he said a Fed valuation model would imply a stock-market multiple of 16 times earnings, down from roughly 19-20 times today. Treasury ETFs ended slightly lower on Thursday.