US 10-Year Treasury Yield Goes Above 2.9% Hitting 4-Year High
On Monday, the 10-year Treasury Yield managed to climb up and hit a new four year high on Monday after an equity self-off it had assisted sent its rate down in the previous week.
The 30-year bond yield soared to its highest level since March. Yield on the benchmark 10-year Treasury note was bit higher at 2.857% at 11:46 am ET while the 30-year Treasury bond yield was at 3.135%.
Earlier on Monday, the 10-yer Treasury yield grew to 2.902m, the highest it has been able to achieve in more than four years over the growing concerns of inflation. On the other hand, the 30-year bond yield rose to the highest levels since March 14 when the bond was able to yield as high as3.215.
On Wednesday’s Consumer Price Index (CPI) for January, the traders and investors are anticipating a confirmation of the concerns that inflation is on its way. The investors are expecting a CPI growth of 0.3% month-over-month and 1.9% year-over-year as per StreetAccount.
The chief technical strategist at ECU Group, Robin Griffiths said on Monday while speaking to CNBC that the growing fears of inflation and the current state of market because of it are not really providing the investors with the safe option they usually have as the stock prices come down.
Griffiths said that during the normal rotation from bull to bear one normally heads straight to government bonds but this is the problem right now. Because as the interest rates are increasing due to strong economy and growing inflation, the government bonds are no more the safest asset but a toxic waste rather.
He said that relative comparison suggest that you are somewhat stuck in equities knowing they are no good.
The yield on the 10-year grew over 2.88% last week settling a 4-year high and triggering an equity turbulence week. Investors are concerned that the increasing inflation could weaken the fixed debts payment value as a result of stronger than expected wages as per the recent jobs report in the Labor’s Department.