Everyone is focusing on the wrong 3% yield
Getty Images / Mario Tama
- The 10-year U.S. Treasury yield touched 3% last week for the first time in more than four years.
- Rising rates have been a key driver in the recent repricing of risk assets and bouts of volatility, but there are other factors at play.
- An uptick in short-term yields has led to Treasury repricing as the competition for capital heats up.
The 10-year U.S. Treasury yield touched 3% last week for the first time in more than four years–inciting much hand-wringing. Yet we believe another milestone is of far greater significance to investors: Yields on short-term U.S. investment grade (IG) corporate bonds also hit 3%—an eight-year high.
Black Rock BlogSee the rest of the story at Business Insider
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