Bond yields continued their upward climb on Wednesday, with the 30-year Treasury yield soaring to 5%, a level not seen since August 2007. Adding to the market's unease, the 10-year Treasury yield also rose, hitting a 16-year high of 4.9%. It is important to note that bond yields move in the opposite direction of prices.

The surge in borrowing costs has investors on edge, causing stocks to decline. Rising yields make borrowing money more expensive for both companies and households. These tighter financial conditions will inevitably put pressure on company earnings and economic growth.

The upward trajectory of yields is not limited to just the US. Germany's 10-year yield surpassed 3% for the first time since 2011, while the UK's 10-year yield reached a peak of 4.65% on Wednesday.

The recent decision by the Federal Reserve to keep interest rates steady, while signaling a belief that rates will remain higher than previously anticipated, has triggered this downward spiral in bond prices.

It remains to be seen how these surging yields will impact various markets moving forward.

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