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Brian Chappatta

What If the U.S. Treasury Stopped Selling 10-Year Notes?

As longer-term yields climb, remember that the federal government has many options to finance itself. 

Janet Yellen doesn’t need a 10-year note.

Janet Yellen doesn’t need a 10-year note.

Photographer: Drew Angerer/Getty Images

Another day, another tantrum in the world’s biggest bond market. 

The benchmark 10-year U.S. Treasury yield jumped as much as 11 basis points on Thursday to 1.75%, while the 30-year yield climbed 10 basis points to 2.51%. The fear is palpable among fixed-income investors that the Federal Reserve will truly allow inflation to exceed its 2% target for an extended period before raising interest rates and pumping the brakes on the economy. This isn’t a surprise to anyone who has been paying attention, but nonetheless the central bank’s projections this week hammered home the shift in its monetary-policy framework.