«The 10 -
year Treasury yield continued its upward trend, rising 7 basis points this week,» says Freddie Mac chief economist Sean Becketti.
Not exact matches
With respect to interest rates, we
continue to see a bifurcation for U.S. rates where shorter - dated
yields move higher in response to possibly two or three more Fed rate hikes, while the U.S.
Treasury 10 -
year yield trades in a 2.25 percent to 2.75 percent range, with a temporary move toward 2 percent possible if geopolitical risks become realities.
U.S. government debt
yields continued their upward climb Wednesday, with the rate on the 10 -
year Treasury note edging above the 3 percent benchmark it hit Tuesday for the first time since 2014.
NEW YORK, April 25 (Reuters)- The dollar hit a four - month high on Wednesday, boosted by the benchmark U.S.
Treasury yield, which
continued its rise after breaking through 3 percent on Tuesday for the first time in four
years.
In response, The Wall Street Journal reported that Gross drew «a line in the sand for the 10 -
year yield, seeing only limited room for the rally to
continue in benchmark 10 -
year Treasurys.»
By the end of that month,
yields on the 10 -
year Treasury note had climbed by nearly one - half of one percent — yet money
continued to flow in to bond funds.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk for China's debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices
continued to rise in Feb: HW Corp bonds with lowest investment - grade rating look vulnerable: Bloomberg 10 -
year Treasury yield reaches 3.0 % for first time since 2014: CNN Money
Yields on US 10 -
year Treasury notes
continued their rise, ending the week at 2.42 %, up from 2.38 % a week ago.
The
yield on the US 10 -
year Treasury note
continued to advance this week in anticipation of tighter monetary policy, rising to 2.58 % from 2.49 % a week ago.
«My fear is that
Treasury yields fell so much in the past
year that if they
continue to rise,» he added, «their prices will fall much harder than those of investment - grade corporate ETFs.»
In Strategic Total Return, we
continue to carry an average duration of about 3
years in
Treasuries, where the prospect of further credit strains remains favorable for
Treasuries, but where
yields are already so depressed that small upward blips in
yield can quickly wipe out a
year or two of prospective interest.
The two dividend funds will target companies that are «expected to
continue to pay and grow their dividends,» but the Fidelity Dividend ETF for Rising Rates will refine that to include companies that are expected to have returns that correlate positively with rising 10 -
year U.S.
Treasury yields, according to the prospectus.
In September 1958, the
yield on the 10 -
year Treasury note rose above that of the S&P 500, a condition which
continued unabated for the next 50
years.
It remains to be seen if this trend
continues after the U.S. curve has flattened by 52 basis points as measured by the
yield of the S&P / BGCantor Current 30
Year U.S.
Treasury Index.
Credit spreads
continue to be elevated versus their levels earlier this
year, and the slope of the
Treasury yield curve remains flat.
The
yield of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index started the week of March 9, 2015, at 2.20 % and
continued lower, closing the week at a 2.12 %.
On Monday, April 23, the markets
continued their slide as the ten -
year Treasury yield settled just below 3.0 %, in spite of the preliminary readings of the April manufacturing and services PMIs both showing increases and March existing home sales rising 1.1 %, beating analyst expectations.
No immediate change in Fed policy is likely — winding down QE3 over the next few months as announced in December will
continue, the Fed funds rate target won't shift from its current zero to 25 basis points and the
yield on the ten
year Treasury note won't rise by much.
A short term result of the Fed's
continuing increase in the Fed funds rate is a flatter
yield curve as seen in the chart of the spread between the 10 -
year and two -
year treasury notes.
While the
yield of the S&P Current 10 -
Year Japan Sovereign Bond Index
continued to hover around zero, the
yields of U.S.
Treasuries were trending higher this quarter on the back of the rising - interest - rate environment.
The
yield of the S&P / BGCantor Current 10
Year U.S.
Treasury Index started the week at a 2.53 % and
continued upward to a 2.60 %.
You will probably see a
continuing creep upwards in bond
yields, perhaps reaching 4 % on 10 -
year Treasuries by early June.
The 10 -
year Treasury note
yield continues above 3 %, and retail earnings paint a murky picture.
The 30 -
year Treasury remained unchanged and
continues to
yield 3.12 %.
Although it is always difficult to forecast changes in the 10 -
year Treasury yield, rising long - term interest rates could
continue to be a big headwind for REITs in 2017.
During the fourth quarter, the 10 -
year Treasury yield increased about 80 basis points from 1.63 percent at the start of October to 2.45 at
year - end and it
continues to hover around that same level.
Interest rates
continue to remain historically low — the 10 -
year Treasury yield was 1.9 % as of April 17.