Bonds & Rates
Treasury Yields Surge Across the Curve
Rates moved sharply higher, with the 10-year Treasury yield above 5% and the 5-year just under it.
Treasury yields climbed hard across the curve. The 5-year yield rose 3.4% to 4.997, the 10-year yield gained 3.0% to 5.114, and the 30-year yield added 2.0% to 5.401.
The move left the 10-year near the center of the day’s market narrative. CNBC Markets said the jump followed services and manufacturing data that raised concern about more Federal Reserve rate hikes.
Bond proxies and credit were mixed. LQD rose 0.4%, HYG added 0.2%, and MUB was essentially flat at down 0.02%. TLT slipped 0.1%.
The yield move also showed up in stocks. Financials fell 2.0% and the Dow lost 1.0%, while real estate managed a 1.0% gain and utilities slipped 0.3%.