Surging U.S. Yields Show Stimulus Impact Still Getting Priced In
- 10-year Treasury yield finally eclipses peak from March chaos
- Mortgage-related hedging seen as risk that drives next leg up
This article is for subscribers only.
U.S. Treasury yields rose to the highest since February 2020 and are at risk of climbing further, as investors start to factor in the full economic impact of a stimulus plan totaling as much as $1.9 trillion.
Rates on 10-year notes, a benchmark for global borrowing, eclipsed their peak from the March market pandemonium, reaching 1.31%. The selloff extended across developed-economy debt markets, gaining momentum as the U.S. House leadership laid out a plan to vote by month-end on President Joe Biden’s aid proposal.