10-year U.S. Treasury yield hits 3% for first time since late 2018

On Monday, the 10-year U.S. Treasury yield hit 3% for the first time since late 2018, marking a new milestone.

The yield on the benchmark 10-year U.S. Treasury note rose about 11 basis points to 2.994% and hit an intraday high of 3.01%. The 30-year U.S. Treasury yield jumped more than 9 basis points to 3.044%. The move on the 10-year U.S. Treasury note brought yields to their highest levels since Dec. 3, 2018. The benchmark yield has risen rapidly this year after ending 2021 near 1.5%. At the end of March, it was trading around 2.33%.

Katie Stockton, founder and managing partner of Fairlead Strategies, said: “This is a very psychologically meaningful mark for the 10-year Treasury yield, but it's not really a significant resistance level for it. We have to go back to 2018. Year-to-date highs of 3.25%. Of course, we're seeing very positive or upward momentum behind Treasury yields, that hasn't changed.”

Investors are looking forward to Wednesday, when the Federal Open Market Committee will issue a monetary policy statement. Friday's fiery inflation report underscored the difficult macro environment. The core personal consumption expenditures price index, the Fed's preferred measure of inflation, rose 5.2% from a year ago.

“The global nature of the current inflation outbreak makes the Fed's job of lowering U.S. inflation more difficult,” John Stoltzfus, chief investment strategist at Oppenheimer, said in a note to clients. , supply chain bottlenecks, etc.), the Fed has used its primary policy lever, raising the overnight borrowing rate to push up borrowing costs for businesses and consumers, limiting its ability to stem these global inflationary pressures.”