The recent selloff in US bonds that's sent 30-year yields to multi-decade highs is poised to set another milestone, with the majority of respondents to the latest Markets Pulse survey predicting the 10-year benchmark will soon exceed 5%.

According to the Bloomberg Markets survey, market participants expect 5% to become a reality for the 10-year Treasury yield within the current year, marking a significant psychological and technical threshold for fixed-income markets.

The bond market downturn has been driven by persistent inflation concerns and aggressive Federal Reserve policy expectations. As yields climb higher, investors are reassessing portfolio allocations and risk strategies across global markets.

Market watchers note that once the 10-year yield breaches 5%, it could trigger further repricing in bond markets and potentially impact equity valuations and currency movements worldwide.