The yield on the 10-year Treasury is hovering close to 5%, the highest level in 16 years.
Here's what history says about the rise in US bond yields and where Treasurys may be headed next.
AdvertisementAdvertisementDuring the 1980s and 1990s, he explained, the 10-year Treasury yield was roughly two times inflation expectations, represented by the 10-year breakeven inflation rate.
As for where the key bond yield heads next, history points to an answer there, too.
There's a less than 1% probability, he says, that the 10-year Treasury yield climbs above 5.5% barring any significant revision higher in inflation expectations.
Persons:
—, Christoph Schon, Treasurys, Schon, " Schon, Jerome Powell, there's, Phillip Colmar, Adam Phillips
Organizations:
Treasury, Barclays, Service, Fed, MRB Partners, Wealth, Federal
Locations:
Ukraine, New York