The U.S. 10-Year Looks Poised to Cross a Red Line This Week
- Benchmark bond yield is nearing watershed 3 percent level
- Hitting threshold could spark wave of risk repricing
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Enter the danger zone. Bond markets are signaling the 10-year U.S. Treasury yield may reach 3 percent as early as this week -- a potential watershed for risk appetite across asset classes.
A deluge of debt supply and the strengthening momentum of bears feeding off inflation fears could help send benchmark yields higher. The 10-year yield currently sits at about 2.9 percent, with the U.S Treasury poised to kick off a big week of issuance by auctioning $151 billion of short-term notes and $28 billion of two-year debt later on Tuesday.