The 10 -
year Treasury note did reach 3 % by the end of 2013 but has promptly fallen ever since to its current level of 1.59 percent.
As the chart above demonstrates, long - term rates like 10 - year Treasury notes don't always track short - term rates like LIBOR exactly, but there's a correlation.
Not exact matches
On Tuesday, the yield on the 10 -
year Treasury note topped 3 percent, the first time it's
done this in more than four
years, and extended gains on Wednesday.
The 10 -
year [
Treasury note yield] or whatever you wanted to
do.»
When people say «the 10 -
year Treasury rate,» they don't mean the fixed interest rate paid throughout the life of the
note.
As yields on the 10 -
year Treasury note rises, so
do the interest rates on 10 - 15
year loans, such as the 15 -
year fixed - rate mortgages.
Rates on fixed mortgages — such as the 30 -
year for purchases and the 15 -
year for refinances — don't follow in lockstep with the fed funds rate — it's actually tied more closely to the yield on the 10 -
year Treasury note, which is also on the rise.
Giesing
noted: «Sales of these products generally align with the 10 -
year treasury rate yet that didn't occur again this quarter.
If they stop and wait when 10 -
year Treasury Note yields exceed 2 -
year yields by 0.25 %, they might be able to
do something amazing, where monetary policy hits the balancing point.
Do Permanent Open Market Operations (POMO) systematically affect the nominal or real yields on 10 -
year Treasury notes (T -
notes)?
How
do you argue that
Treasuries, 10
Year Notes and longer, are about to undergo a secular decline in price and then go on to say that investors will be buying them in troves with the yield at only 3 %?
The 2.4 % yield offered on a 10 -
year U.S.
Treasury note doesn't provide enough safe income to fund a full retirement, nor
does the 1.8 % average yield among companies in the Standard & Poor's 500 - stock index.
Finally, the future inflation rate implied by five
year treasury notes and the inflation - protected
treasury securities
do hint that five
years down the road, inflation will still be close to 2 %.
Does 1.24 % /
year over the 10 -
year Treasury note really give you compensation for the additional risk?
Problem is, paying 4.1 % to others doesn't seem so cheap when you can only earn 2.4 % by buying 10 -
year Treasury notes or just 2.8 % with intermediate - term corporate bonds.
One may be forgiven for blaming the Federal Reserve; given the long - lasting expansion, a 10 -
year Treasury note yielding just little above 2 %
does «feel» expensive.
As yields on the 10 -
year Treasury note rises, so
do the interest rates on 10 - 15
year loans, and vice versa.
A 10 -
year US
Treasury note yielding just little above 2 %
does feel expensive.
During the week the
Treasury did auction $ 32 billion 2's, $ 35 billion 5's and $ 29 billion 7 -
year notes.
The yield on the 10 -
year Treasury note, which is the best market indicator of where mortgage rates are going,
did briefly touch 3.00 % on Wednesday but quickly retreated back down on Thursday after the Consumer Price Index reading came in below expectations.