It means mortgage rates go up. It also means that corporate earnings are devalued with respect to the 10 year yield, a metric sometimes used in stock valuations. Rising long term rates may also brake the recent M&A craziness somewhat.
Ultimately it gives antsy investors a chance to sell, take a breather, then realize that fixed income yields are completely abysmal. I know this feeling from personal experience, after jumping to cash two weeks ago this past Wednesday. Eventually those taking money off the table will re-invest (as will I).
FSD – This looks like a new aspect of our old friend, “the conundrum”. The 10-year is selling off, for whatever reason (global competition for fixed income investors I imagine.)