Sept. 14 (UPI) — Yields on the 10-year U.S. Treasury note hit the 5% mark on Monday morning for the first time since 2023 before receding slightly.

The 5% 10-year Treasury yield mark is seen as an indicator of economic stress reflected in higher borrowing costs. On Monday, 10-year yields reached 5.014% before coming down to 4.947%.

Ten-year Treasury yields were 4.15% at the beginning of the year.

This development comes at a significant time with the Federal Open Market Committee set to meet later this week to deliver its next interest rate decision.

Prior to 2023, 10-year Treasury note yields had not touched 5% since 2007 when the United States fell into the Great Recession.

Two-year Treasury yields fell more than a basis point, or 0.01%, to 4.628% on Monday while 30-year yields fell more than two basis points to 5.328%. Two-year yields reached the highest rate in more than two years last week.

Inflation remains higher than the Federal Reserve’s target 2% annual rate. Last week, the consumer price index from the U.S. Bureau of Labor Statistics showed a 3.4% core inflation rate. The CPI is the Fed’s favored measure of inflation.

Sticky inflation and other economic markers have raised the expectation that the Fed will raise its target interest rates this year, which currently sit in the 3.5% to 3.75% range. Economists have the likelihood of an interest rate hike coming this month at 90%.

“Hiking would be the cleaner decision based on the data and current market expectations,” Jay Woods, chief market strategist for the firm Freedom Capital Markets, told CNBC. “I believe the market has priced that in and may rally with a hike. No change may cause a negative market reaction as it screams once again the Fed is behind the curve.”