Economics
U.S. 10-Year Benchmark Not Ready to Contemplate Life Beyond 3%
- Heaviest supply since 2010 likely to weigh more on short end
- Ten-year yield fails to hold 3% for fourth time this year
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Rising inflation or the rising tide of government-debt issuance could lift the 10-year Treasury yield back over 3 percent this week, but not without stiff resistance.
This level remains a high water mark for the benchmark U.S. rate this year. Last week could have been bruising for Treasuries, but the 10-year yield only briefly eclipsed 3 percent, then fell back for the fourth time this year. That’s despite a U.S. jobless rate below 4 percent, economic growth above 4 percent, and a rare surge in late-cycle government borrowing.