Economics
How 3% Yields Could Reshape the Investing Landscape
- Yield on benchmark 10-year U.S. Treasury hits 2.99 percent
- Stocks, emerging markets could reprice with higher inflation
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Ten-year Treasury yields sit closer to 3 percent than at any time in the past four years, prompting investors to dust off their playbooks for how to trade in an era of relatively higher rates.
Rising rates isn’t exactly a new problem for markets -- the 10-year yield jumped 30 basis points in January alone -- but this time the spike’s driven by surging commodity prices, not heady economic gains. And that’s thrown a wrinkle into the discussion, particularly when it comes to equities.