A deepening selloff in the U.S. bond market drove the yield on the 10-year U.S. Treasury note to 5% for the first time in 16 years, extending a rout that has rattled stocks, lifted mortgage rates and fueled persistent fears of an economic slowdown. 

A critical driver of U.S. borrowing costs, the 10-year yield rose to within a few thousandths of a percentage point of 5% last week following an unexpectedly strong retail-sales report and comments from Federal Reserve Chair Jerome Powell that reinforced investor bets on stubbornly high short-term interest rates.