10-Year U.S. Treasury Bond Yield Increases
May 15, 2018
Tuesday morning, May 15, 2018, the yield on the 10-year Treasury Bond has risen to 3.067% from April’s rise of 30.3 – reaching the highest rate in 7 years. In trend with the 10-year yield, the 2-yield has risen to 2.568% – which is its highest rate since the economic recession in 2008. Future contracts are forecasting the central bank will raise the benchmark rate a fourth time this year, furcating a 51% likeliness of the increase by the Fed.
Due to erosion of purchasing power on fixed payments, rising inflation is a direct threat to Treasury prices resulting in the rise on bond rates. Normally, such moves in yield rates would have came early after an economic recovery but never transpired when the U.S. economy recovery began many years ago.
