NEW YORK (VINnews) — The yield on the benchmark U.S. 10-year Treasury note climbed to about 5.35% on Wednesday, its highest level since 2002, as investors sold government bonds ahead of the release of minutes from the Federal Reserve’s latest meeting.

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The move is important for Wall Street because Treasury yields influence borrowing costs across the economy and play a major role in determining how much investors are willing to pay for stocks.

Higher yields can pressure stocks by making bonds more attractive relative to equities. They also reduce the present value of companies’ future earnings, which can weigh particularly heavily on high-growth technology and other richly valued stocks.

The rise in yields also means higher borrowing costs for businesses, potentially making it more expensive to finance debt, investments and acquisitions.

So far, however, the stock market has remained resilient, supported by strong corporate earnings and expectations for continued economic growth.

The bigger concern for investors is whether the 10-year yield continues to climb. A sustained move higher could put increasing pressure on stock valuations and make it more difficult for major indexes to maintain record levels.

Investors are closely watching the Fed minutes for clues about the central bank’s outlook on inflation, economic growth and interest rates.

For now, the 5.35% yield does not necessarily signal a stock-market downturn. But it does give investors another reason to watch interest rates closely as they assess whether stock prices have risen too far relative to the returns available in the bond market.