The 10-year Treasury yield is up by 4.1 bps to 4.16% on Monday and is now higher than its closing yield of 4.106% on September 17, the day the Fed cut rates by 25 bps.
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The rise comes as both the S&P 500 (SPX) and Nasdaq 100 (NDX) have secured new all-time highs during the past week, signaling an increasing risk appetite among investors. In other words, investors may be selling off lower-risk assets, like Treasuries, in favor of higher-risk assets, like stocks. A Treasury bond’s price carries an inverse relationship with its yield.
10-Year Treasury Yield Remains High amid Government Shutdown
The government shutdown, now in its sixth day, has delayed key labor and inflation data, adding uncertainty to the bond market. Despite these uncertainties, the 10-year yield remains elevated, reflecting a market that seems to be pricing in continued economic growth and strong sentiment in stocks.
“The bond market represents good value,” said Baird Funds co-CIO Warren Pierson. “For retirees in general, pension plans, those levels of interest rates are pretty good.”
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