The 10-year bond yield is simply back to normal, says Ed Yardeni

• 10-year bond yield at 4-5% is considered 'back to normal' and a sign of a healthy economy.
• Corporate bond spreads have not widened, suggesting no stress in financing.
• Treasury's potential bond buybacks are a tool to prevent 10-year yields from hitting 5%.
• Factors like political pushback and shortages in semiconductors/electricity might slow down data center spending, which could help the bond market.

Ed Yardeni believes the 10-year bond yield returning to 4-5% is a sign of a healthy economy, not necessarily inflation fears. He notes that corporate bond spreads haven't widened, indicating no significant stress in financing. The Treasury's potential use of its General Account for bond buybacks is seen as a tool to manage yields, preventing them from reaching 5%.