Forex Marketz Daily Forex News – Fully Markets Update
Yesterday, during the overnight North American trade hours, the benchmark 10 year Treasury note’s rate kicked the new week off by rising. The yield soared higher to 2.99 percent and is testing the key three percent yield level. This level could trigger a reaction with global equity and financial markets if breached.
As of 4 pm EST, the 10 year Treasury yield was fetching 2.973 percent. It had hit a high of 2.998 percent earlier in the trading session. That is its highest level since January 2014. The yield on the long term 30 year Treasury bond also rose. It is now at 3.143 percent. Please keep in mind that bond yields move inversely to prices.
The 10 year benchmark note is key for U.S. mortgage rates as well as other key financial products in the United States. The yield has jumped since April. Investors are noting signs of increasing inflation. Also, the central bank, the Federal Reserve has signaled further rate increases are in the cards this year.
Treasury and other Products watch the Key Three Percent Level
Traders should note that the yield on this benchmark 10 year note hit 2.96 percent on Friday. At that time, it was the highest rate since January 2014. The short term two year yield was at its highest rate since September 2008.
This level found at three percent could weigh on global equity markets. When the yield broke above 2.9 percent in February, concerns about rising borrowing costs triggered a wild correction for the S&P 500, Dow Jones Industrial Average and other global stock bourses.
Some traders might welcome three percent. This comes as the Federal Reserve Bank starts to unwind its massive balance sheet. The Fed built it built up during the financial crisis that started in 2009.
