US 10-year Treasury yields hit 5.12%, the highest since 2007, driven by oil prices, rising public debt, and Fed rate hikes. While a "bond shock" (forced selling of other assets to cover bond losses) may occur, analyst Nattachat Mekmasing notes this cycle differs from the past—current stock valuations aren't as inflated, limiting shock severity. Key pressures include supply overflow from both government and hyperscaler corporates. A weak 5-year bond auction (2nd worst since 2018) signals weakening demand. Q4 remains uncertain, with midterm elections potentially tempering further yield rises.