10-year Treasury yield tops 3% for first time since 2014, a key interest rate milestone that should ripple through the financial markets
UPDATE TO THIS MORNING’S EARLY REPORT
“The yield on the benchmark 10-year Treasury note hit the key psychological level of 3 percent Tuesday for the first time since January 2014 on Tuesday. The yield on the two-year Treasury note also set a multiyear record Tuesday, topping 2.5 percent for the first time since September 2008. The yield inched past 3 percent shortly after the open of stock trading on Tuesday before pulling back slightly.”
MK note: As mentioned in our market reports the past two days, this nudge above the 3% level comes in a week when the U.S. Treasury seeks to finance another nearly $100 billion in government paper. It is difficult to assess how various markets will react. Time will tell. At the moment gold and silver are reacting favorably. Though important, this back and forth at the 3% yield level is a way station on a much more complicated and extended journey.