The higher yield shows Wall Street is nervous about inflation. Still, the stock market is confident—for several reasons—that the benchmark yield won't inch up much more. ...

Group 1 - The yield on the 10-year Treasury note has reached 4.153%, indicating a selloff in Treasuries as prices decrease [1] - Treasury yields have been fluctuating between 4.10% and 4.20% recently, with 4.15% being the midpoint of this range [1] - The focus is now shifting to the next key level of 4.2% following the breach of 4.15% [1] Group 2 - BMO Capital Markets strategists suggest that a sustainable break of 4.25% is less likely due to various macroeconomic risks [2]

Group 1 - The S&P 500 index is reaching record highs following the release of the PPI inflation report, indicating positive market sentiment [1] - The yield on the 10-year Treasury note has decreased to 4.048%, a level comparable to that seen in April, suggesting a potential shift in investor demand [2] - The Treasury Department is preparing to auction $39 billion in 10-year notes, which will serve as a test for market demand at the current yield levels [2]