US Treasury Yields Are Surging

The Benchmark 10-year CMT is Surging: Here’s Why

Ten-year treasuries jumped up to 1.74% last week, a level we haven’t seen since January 2020. The CMT or Constant Maturity Treasury rate has been on the move- a fact proven by last Thursday’s 10 basis point jump in the index used to establish the expected rate and available funds for federally-insured reverse mortgages.

On January 4th, the first day of trading this year, the 10-year Constant Maturity Treasury rate was 0.93 percent. So what’s behind the sudden surge in long-term treasuries? In short, traders in the bond market. An axiom many of viewers may recall is that when bond prices drop Treasury yields go up. It’s an inverse relationship with each reacting opposite to the other. Newton’s third law comes to mind which states ‘For every action, there is an equal and opposite reaction’.

So what are the talking heads on cable saying? CNBC’s Jim Cramer sees the bond sell-off being field by concerns of inflation beyond the Federal Reserve’s expectation as a result of trillions of dollars of stimulus being pumped into a recovering economy. 

Bloomberg columnist Brian Chappatta said, “Bond traders were throwing yet another tantrum…

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Don Currie March 22, 2021 at 7:06 am

You do a great job Shannon. Thanks for the insights

Don Currie

Shannon Hicks March 22, 2021 at 8:10 am

Many thanks Don

Guy Schwartz March 22, 2021 at 9:05 am

Will some one please tell me where they see this so called “inflation” hotels? restaurants? airlines? cruise ships?
Where is it????????


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