To put that in context, here's a graph of the 10 -
year Treasury yield back to 1962.
Not exact matches
Since the bond market's «flash crash»
back in October — when US 10 -
year Treasury yields fell 34 basis points, or 0.34 % in one morning — concerns regarding liquidity and how resilient the bond market might be to shocks have lingered around the market.
The 10 -
year U.S.
Treasuries yield rose
back to 2.888 percent from last week's low of 2.793 percent.
Korean leaders to meet at North - South border on Friday: BBC Chinese geologists say N. Korea's main nuclear test site has likely collapsed: WaPo China air force intimidates Taiwan with military flights around island: Reuters Conservative Supreme Court justices appear to
back Trump's travel ban: The Hill French president expects Trump will withdraw from Iranian nuclear deal: BBC Rising interest rates keep Wall Street on edge: CBS Investors will focus on various inflation numbers in days ahead: Bloomberg A closer look at the 10 -
year Treasury yield's rise to 3 %: Calafia Beach Pundit T. Rowe Price's assets under mgt top $ 1 trillion — a sign of active mgt growth: P&I World trade volume slumped 0.4 % in Feb, first monthly loss since Oct: CPB
With respect to interest rates, after having fallen
back below 1.35 % on the 10 -
year Treasury note, last summer,
yields have climbed steadily this fall.
The
yield on the 10
year Treasury roughly doubled between May of last
year and January of 2014 and has now slid
back 50 basis points this
year — which may not sound like a lot — but on a percentage basis is rather substantial.
Although US
Treasuries have been sliding since the beginning of the
year, the uncertainty and volatility that we have seen in the past few weeks have pushed
yields back down, forcing 10 -
year Treasuries to close last week at 2.77 % — a level far away from the psychological 3 % level many have been waiting for.
The Dollar Spot Index was flat at 91.54 at the time of writing, 10 -
year Treasury yields sitting at 2.96 % ahead of today's open and the release of today's figures that could see
yields bounce
back to 3 % this afternoon.
The 10
year Treasury yields had been 2.84 %, lifted to 2.92 % on the announcement, and then fell
back to 2.88 %.
Yields moved lower as the
yield - to - worst of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index is now at a 2.49 % which brings it
back down to level Read more -LSB-...]
As to whether the stock market has put in a «real» bottom, Reynolds said he would like to see corroborating evidence of improving conditions, like the
yield on the 10 -
year U.S.
Treasury note moving
back up, and improvement in the investment - grade corporate credit market.
-- The last time the
yield of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index was in the neighborhood of 2.4 % was
back in June 2013.
With its leaning toward government -
backed issues, BND's
yield of 4.4 % is just slightly greater than the 3.6 % being paid by the iShares Lehman 7 - 10
Year Treasury Index (NYSE: IEF).
A
year later, the 5
year agency mortgage
backed securities were
yielding almost triple that of the 5
year US
Treasury.
I used to think it must have been easy to be an equity investor
back in the 1950s when the dividend
yield on the S&P 500 exceeded the
yield on ten -
year Treasuries.
If you sit
back and ponder this situation for a minute, this helps to understand why mortgage interest rates aren't still shooting to the moon and why
Treasury yields have cooled during the past week or two, with the 10 -
year yield closing below 2.75 % last week.
In February 2011, 5
year agency mortgage
backed securities
yielded around twice as much (around 4.0 %) than a 5
year US
Treasury (around 2.0 %).
Fixed income sectors shown to the right are provided by Barclays and are represented by the following Bloomberg Barclays Indices —
Treasury Inflation Protected Securities: U.S.
Treasury Inflation - Protected Securities (TIPS) Index; Floating Rate Loans: US Floating - Rate Note Index (BBB); Asset -
backed securities: US Asset - Backed Securities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates
backed securities: US Asset -
Backed Securities Index; High Yield: US Corporate High - Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage - backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates
Backed Securities Index; High
Yield: US Corporate High -
Yield Bond Index; Convertibles: US Convertible Bond Index; Mortgage -
backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 - Year Index; Investment Grade Corporates: US Corporates
backed securities: US Aggregate Securitized MBS Index; Broad Market: US Aggregate Bond Index; Municipals: Municipal Bond 10 -
Year Index; Investment Grade Corporates: US Corporates Index
The last time the
yield of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index was in the neighborhood of 2.4 % was
back in June 2013.
The
yield of 10
year US
Treasury Notes is down to less than 1.8 %, while oft - maligned gold is coming
back into favor.
Back in 1980, the 10 -
year Treasury yielded a fat 11.1 %, and stocks sported an earnings
yield (calculated as earnings / price, or the P / E ratio turned upside down) of 13.5 %.
The U.S. 10 -
year Treasury bond
yield started this week higher (on June 22, 2015) at 2.3 %, as a new proposal by Greek Prime Minister Alexis Tsipras has put the negotiations
back on track and given optimism to an eventual settlement before the June 30, 2015, deadline.
The first chart shows the
yield on the 10
year treasury going all the way
back to 1953.
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.
Bond
yields hit their
year - to - date lows in early September, with the 10 -
year Treasury yield getting as low as 2.03 % before trending
back up towards 2.40 %.
Yields moved lower as the
yield - to - worst of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index is now at a 2.49 % which brings it
back down to level Read more -LSB-...]
Looking
back on a
year of interest rate movements, Wander observes that today the
yield spread between 2 - and 10 -
year Treasuries is about 0.50 %, «less than half of where we started 2017.»
Despite the ending of quantitative easing by our Federal Reserve, 10
year treasury yields are way below two percent despite robust GDP growth in the
back half of 2014.
The chart shows the pattern of
yields going
back 46
years for the Fed funds rate, T - bills, the ten
year Treasury note and long maturity treasur
Treasury note and long maturity
treasurytreasury bonds.
Yields on the 10 -
year Treasury sank below 1.6 % breaking a record low set
back in 1946.
This
year investors who followed the MFIP were led to shorten maturities (therefore lowering their interest - rate risk) and also to use higher -
yielding corporate bonds rather than
Treasuries or mortgage -
backed securities (thereby keeping lower duration and less interest - rate risk).
It also says that the recent move up in 10 -
year Treasury bond
yields has been due to a combination of both increases in inflation expectations on the
back of economic growth and capacity, as well as an increase in real
yields due to a relative shift in the supply and demand for capital.
Now, anyone that does work on the
Treasury yield curve knows that the US government made life tough when they withdrew the 30 -
year back in 2001.
Yields moved lower as the
yield - to - worst of the S&P / BGCantor Current 10
Year U.S.
Treasury Bond Index is now at a 2.49 % which brings it
back down to level seen at the end of May.
An interesting chart that might represent how U.S. rates could remain low on the
back of the European economy for a while shows the
yield difference between the S&P Eurozone Sovereign Bond 7 - 10
Years Index and the S&P / BGCantor 7 - 10
Year US
Treasury Bond Index.
The 10 -
year Treasury yield reached a 13 - month high of 2.17 % on May 28 and pulled
back only slightly from that level by month - end.
The 10 -
year U.S.
Treasury Bond regained support during the last week of the month as
yield came
back down to 2.13 % after being as high as 2.29 % during the month.
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.
U.S. 10 -
Year U.S. Treasury yields challenged the four - year highs of 3.03 % but fell b
Year U.S.
Treasury yields challenged the four -
year highs of 3.03 % but fell b
year highs of 3.03 % but fell
back.
With 10 -
year Treasuries yields having fallen to 3.32 % from 5.22 % in 2006, as investors rushed to buy government -
backed notes following market's plunge from 2007 to 2009.
The
yield on benchmark 10 -
year Treasury bonds stopped rising and has fallen
back to roughly 2.4 percent.