Once-Elusive 1% Yield Is Becoming Norm for 10-Year Treasuries
- Outlook for stimulus and rising inflation is lifting yields
- 2-to-10-year yield gap approaching its highest since May 2017
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Treasuries extended last week’s selloff driven by fiscal stimulus optimism, keeping the benchmark 10-year note’s yield above the long-elusive 1% level for the fourth straight day.
Long-term yields in the world’s biggest debt market are settling into a new, higher range above the tough-to-crack perch set in March as traders bet President-elect Joe Biden, who takes office next week, will push for quick passage of more economic help. This comes as traders’ outlook for inflation hovers near a two-year high.