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The 10-year treasury rate closed today at 1.54%, significantly up from 0.76% at the start of November last year. The 10-year U.S. Treasury yield, thought of as an indicator of investor sentiment on the economy due to being a benchmark for debt such as mortgage rates, hit a 13-month high of 1.6% this past week. The rate has since moved slightly back and trading at 1.54% Thursday afternoon. Its rapid rise above 1% since the end of January was fueled by concerns about rising inflation and the U.S. government's $1.9 trillion fiscal relief package, which according to a CNBC article written by Vickey McKeever, could stimulate the economy too quickly and cause a surge in prices. According to the same 3/10/2021 article from CNBC, “The 10-year U.S. Treasury yield is likely to hit 2% by the end of the year but could spike “well above” that in the second quarter, according to ING senior rates strategist Antoine Bouvet.”
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