10-year Treasury yield jumps above 4.6% after hot retail sales, foiled Iran attack (2024)

FAQs

10-year Treasury yield jumps above 4.6% after hot retail sales, foiled Iran attack? ›

Treasury yields jumped Monday as investors reacted to a hotter-than-expected retail sales report and rising geopolitical tensions. The yield on the 10-year Treasury rose by more than 11 basis points to 4.612%, at one point touching its highest level since mid-November.

US 10 Year Note Bond Yield was 4.57 percent on Wednesday May 29, according to over-the-counter interbank yield quotes for this government bond maturity. Historically, the US 10 Year Treasury Bond Note Yield reached an all time high of 15.82 in September of 1981.

This spread is widely used as a gauge to study the yield curve. A 10 year-3 month treasury spread that approaches 0 signifies a "flattening" yield curve. Furthermore, a negative 10 year-3 month spread has historically been viewed as a precursor or predictor of a recessionary period.

5 Year Treasury Rate is at 4.53%, compared to 4.52% the previous market day and 3.90% last year. This is higher than the long term average of 3.75%. The 5 Year Treasury Rate is the yield received for investing in a US government issued treasury security that has a maturity of 5 years.

The 10-year note is undoubtedly a highly significant benchmark for global financial markets. A rising yield indicates investor confidence in the economy but also suggests higher borrowing costs, potentially slowing economic growth. Conversely, a falling yield may signal economic uncertainty.

10 Year Treasury Rate is at 4.63%, compared to 4.67% the previous market day and 3.44% last year. This is lower than the long term average of 5.86%.

However, when it comes to 10-year Treasuries, factors like inflation, economic growth and Federal Reserve's (Fed) monetary policy, among others, play important roles.

Treasury bonds have maturities of 20 or 30 years and pay interest every six months. In contrast, Treasury bills have much shorter maturities, from a few days to 52 weeks. Treasury bills are sold at a discount to their face value and do not pay interest before maturity.

The 3-Month Treasury bill is a short-term U.S. government security with a constant maturity period of 3 months. The Federal Reserve calculates yields for "constant maturities" by interpolating points along a treasury curve comprised of actively traded issues of term (e.g., 1 month) maturities.

Are treasury bills better than CDs? ›

Choosing between a CD and Treasuries depends on how long of a term you want. For terms of one to six months, as well as 10 years, rates are close enough that Treasuries are the better pick. For terms of one to five years, CDs are currently paying more, and it's a large enough difference to give them the edge.

If bond yields rise, existing bonds lose value. The change in bond values only relates to a bond's price on the open market, meaning if the bond is sold before maturity, the seller will obtain a higher or lower price for the bond compared to its face value, depending on current interest rates.

Treasury securities are considered safer investments relative to stocks because they are backed by the U.S. government. Bond prices and yields move in opposite directions, which means that falling prices boost yields and rising prices lower yields.

The higher the yields on long-term U.S. Treasuries, the more confidence investors have in the economic outlook. But high long-term yields can also be a signal of rising inflation expectations.

Interest from Treasuries is generally taxable at the federal level, but not at the state level. Interest from munis is generally exempt from federal taxes, and if you live in the state where the bond was issued, the interest may also be exempt from state taxes.

Bonds and Notes

Notes are relatively short or medium-term securities that mature in 2, 3, 5, 7, or 10 years. Both bonds and notes pay interest every six months.

Over the long-term, the historical average spread between the multifamily cap rate and 10-Y T-bills stands close to 2.15%, or 215 basis points. More recently, since the 2008 Great Recession, the spread has increased close to 3.15%.

As we headed into the 80s, it's important to note that the country was in the middle of a recession, largely caused by the oil crises of 1973 and 1979. The second oil shock caused skyrocketing inflation. The cost of goods and services rose, so fittingly, mortgage rates did too.