A recent selloff in the U.S. bond market has caused the 10-year U.S. Treasury note yield to climb to 5%, a level not seen in 16 years, according to a report by The Wall Street Journal. This surge in yield has had wide-ranging effects, including unsettling the stock market, raising mortgage rates, and fueling concerns of a potential economic downturn.

The increase in borrowing costs in the U.S. has been primarily driven by the rise in the 10-year yield, which reached a peak of 5.021% during early morning trading on Monday. At the start of the year, the yield stood at approximately 3.8%. However, in a reversal of events, it eventually settled at 4.836% after surpassing the crucial 5% mark, triggering renewed interest from buyers.

The milestone of a 5% yield has sent shockwaves throughout the financial world, causing concerns amongst investors. This surge in borrowing costs has had a significant impact on the stock market, with stock prices experiencing turbulence due to the uncertainty surrounding the bond market.

Additionally, the rise in Treasury yields has led to an increase in mortgage rates, which has affected homeowners and potential buyers. As borrowing costs soar, mortgage rates have followed suit, making it more expensive for individuals to either refinance their existing mortgages or obtain new ones. This increase in rates could potentially hinder the housing market's growth.

The breach of the 5% threshold has also brought about persistent fears of an impending economic slowdown. With higher borrowing costs, businesses may find it more challenging to expand, which could limit investments and hinder economic growth.

Market participants will be closely monitoring the bond market in the coming weeks as they gauge the impact of the 10-year Treasury note yield breaching the 5% mark. The Federal Reserve's response to this development may also be of significant interest, as it could potentially influence its monetary policy decisions going forward.

In conclusion, the recent bond market selloff has propelled the 10-year U.S. Treasury note yield to reach 5% for the first time in 16 years. The milestone has caused upheaval in the stock market, increased mortgage rates, and raised concerns about a potential economic slowdown. The implications of this development will undoubtedly reverberate throughout the financial landscape as investors and market participants navigate the changing dynamics of the bond market.