{"id":1461155,"date":"2022-05-03T07:14:38","date_gmt":"2022-05-03T11:14:38","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1461155"},"modified":"2022-05-03T07:14:45","modified_gmt":"2022-05-03T11:14:45","slug":"10-year-treasury-yields-top-3-for-first-time-since-2018","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/10-year-treasury-yields-top-3-for-first-time-since-2018\/","title":{"rendered":"10-Year Treasury Yields Top 3% for First Time Since 2018"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2F10-year-treasury-yields-top-3-for-first-time-since-2018%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1461155&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><\/div>\n<div class=\"RichTextArticleBody\">\n<div class=\"RichTextArticleBody-body\">\n<p><span class=\"ArticlePage-articleBody-firstLetter\">T<\/span>he 10-year <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/treasury-department\">Treasury<\/a> yield breached 3% on Monday for the first time since 2018, a development that will raise costs for the federal government and portends higher rates on mortgages, credit cards, and other financial products. <\/p>\n<p>The recent run-up in interest rates on Treasury securities follows the Federal Reserve&#8217;s <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/curbing-inflation-without-recession-not-straightforward-or-easy-jerome-powell-says\">accelerated<\/a> efforts to tighten monetary policy by raising its short-term <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\">interest rate<\/a> target. <\/p>\n<div class=\"Enhancement\">\n<div class=\"Enhancement-item\"><\/div>\n<\/p><\/div>\n<p>The yield, which is the rate of earnings generated by the security over time, is the highest it has been since 2018. <\/p>\n<p>One major factor influencing yields is rising inflation: Higher expected inflation makes future payments on a Treasury note less valuable, meaning that investors will demand higher payments \u2014 that is, higher yields. <\/p>\n<p><b><a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/how-rising-interest-rates-will-affect-federal-spending-and-debt\">HOW RISING INTEREST RATES WILL AFFECT FEDERAL SPENDING AND DEBT<\/a><\/b> <\/p>\n<p>Another related factor is the Fed&#8217;s effort to curb inflation by, in effect, shrinking the money supply, which makes investors demand more compensation to loan money to the Treasury. <\/p>\n<p>After the pandemic broke out, the <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\">Fed<\/a> undertook extraordinary measures to stabilize the economy, including dropping its interest rate target to near-zero, a level which it kept in place for nearly two years. <\/p>\n<p>Now, the Fed is trying to reverse those measures quickly and bumped its interest rate target by a quarter percentage point last month. Yields on notes and bonds have begun to rise at a rapid clip. <\/p>\n<p>The Fed is reacting to soaring inflation. Consumer prices <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/inflation-rises-to-8-5-in-march-highest-in-more-than-four-decades\">rose 8.5%<\/a> for the 12 months ending in March, the fastest clip since 1981. <\/p>\n<p>Because inflation has ballooned more than anticipated, the Fed appears poised to conduct half-point rate hikes in the coming months, an aggressive tactic that hasn\u2019t been used by the central bank in more than two decades. <\/p>\n<p>Desmond Lachman, a senior fellow at the American Enterprise Institute, told the <i>Washington Examiner<\/i> on Monday that the 10-year Treasury yield is increasing at the fastest clip since 1994 in response to the Fed&#8217;s shift toward a more hawkish monetary policy. <\/p>\n<p>&#8220;The surge in long-term rates is bound to slow the U.S. economy and to cause serious strains for the emerging market,&#8221; he said. <\/p>\n<p>A rising interest rate environment entails several major changes for the economy. <\/p>\n<p>First, the government&#8217;s borrowing costs are <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/how-rising-interest-rates-will-affect-federal-spending-and-debt\">set to rise<\/a>. <\/p>\n<p>With the yield on the 10-year note at 3%, federal spending on interest would increase to $440 billion next year, $125 billion more than if yields were at 2%, according to a recent Congressional Budget Office <a class=\"Link\" href=\"https:\/\/www.cbo.gov\/publication\/57908\">analysis<\/a>. Interest payments would rise to 1.7% of gross domestic product, rather than 1.2%. <\/p>\n<p>Second, rising rates will slow spending in key sectors, such as housing. Average 30-year fixed-rate mortgage rates have recently crossed 5%, <a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/housing-prices-hit-record-as-sales-slow\">already slowing<\/a> home sales. <\/p>\n<p>Separately, other movements in the bond markets are raising fears of a recession, namely yield curve \u201cinversions,&#8221; which is when yields on shorter-dated bonds exceed longer ones. <\/p>\n<p><b><a class=\"Link\" href=\"https:\/\/www.washingtonexaminer.com\/\">CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/a><\/b> <\/p>\n<p>For example, the yield on the five-year Treasury note is now higher than the yield on 30-year notes. <\/p>\n<p>Those inversions can show that investors have little faith in the ability for growth to pick up in the coming years and have been regarded as harbingers of economic downturns.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The 10-year Treasury yield breached 3% on Monday for the first time since 2018, a development that will raise costs for the federal government and portends higher rates<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1461155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1461155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1461155"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1461155\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1461155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1461155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1461155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}