UNITED STATES (OBSERVATORY) – The yield of 10-year US Treasury bonds for the first time since January 2014 reached a level above 3%, which signals a probability of an increase in interest rates in the near future.
The indicator of 3% became a kind of psychological mark, which indicates an increase in inflationary expectations.
Previously, the yield on the US Treasury’s debt securities could not rise to 3%, the daily high, which was 2.996% the day before.
The yield of two-year Treasury on April 24 increased by 2.6 basis points to 2.5%, and 10-year bonds by 2.4 basis points to 3.167%.
Pressure on the value of US Treasury bonds has an increase in the budget deficit, increasing inflationary pressures and expectations of tightening monetary policy in the US, experts say.