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LONDONSYDNEY, Oct 23 Reuters The benchmark 10year Treasury yield rose above 5 and to its highest since 2007 on Monday, as a roaring U.S. economy led investors to expect interest rates to stay high for an extended period.

The combination of those higher yields and risk of a wider conflict in the Middle East soured sentiment at the start of a week full of megacap earnings and key data, and pushed global shares down to sevenmonth lows.

The 10year Treasury yield reached 5.012, and was last up 8.6 basis points on the day, the latest sign of the scale of the global bond sell off, driven also by rising government debt increasing supply of bonds around the world, and an uncertain outlook which has caused investors to demand a greater premium to hold longer dated bonds.

5 from an economic perspective is just another number. But as far as investors are concerned it resonates, Daiwa Capital chief economist Chris Scicluna said.

I dont think it39;s a tipping point, but it39;s a reminder of the record tightening we39;ve had and it39;s a reminder, as far as the Fed is concerned, that they can39;t be entirely sure quite how much of that tightening so far has already been transmitted to the real economy and how much more is to come, he said.

The surge in bond yields has tightened…