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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
Treasury Secretary Mnuchin Plans To Exhaust All $500 Billion In Virus Loan Fund
Photographer: Andrew Harrer/Bloomberg
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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.