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Mike Sanders, head of fixed income at Madison Investments, said investors closely watch the 10-year U.S. Treasury yield because it is regarded as the foundational "risk-free" rate benchmark, against which almost all assets globally are valued. Sanders noted that traditionally, the 10-year Treasury yield mainly reflects economic growth and inflation expectations, but in recent years, other factors have become increasingly influential, including the Federal Reserve's policy path, energy prices, fiscal deficits, and overseas investor demand. "When the Fed adjusts short-term policy rates to curb inflation or stimulate economic growth, the market-determined 10-year Treasury yield often reflects how effective the Fed's policy has been," he said.