The 5-year Treasury yield has climbed to approximately 4.81-4.83% amid resilient U.S. economic growth, sticky inflation pressures from energy prices tied to Middle East tensions, and a higher term premium reflecting fiscal deficit concerns and heavy Treasury supply. These factors have outweighed expectations for Federal Reserve policy stability at the 3.50-3.75% funds rate target, with markets pricing in potential near-term hikes while the central bank emphasizes its dual mandate. Elevated corporate borrowing, particularly by AI hyperscalers, has also competed for capital and supported real yields. The September FOMC meeting and upcoming CPI releases will provide key signals on whether the recent upward drift in intermediate yields persists through year-end or stabilizes.