Interest rates are going up again. Get used to it; the bond market moves in multi-decade swings and they came down for over 40 years (1981-2022). By Wolf Richter at wolfstreet.com:
Fed cut by 75 basis points since September while 10-year Treasury yield rose by 75 basis points to 4.40%, as Bond Market frets about Inflation & Supply.
The 10-year Treasury yield jumped by 7 basis points on Friday, to 4.40%, having risen five trading days in a row. It’s now just 4 basis points below the post-rate-cut closing high on November 13 (4.44%). These yields are the highest since June.
Since the eve of the Fed’s September 18 rate cut, the 10-year yield has risen by 75 basis points, while the Fed has cut by 75 basis points. The difference is 150 basis points! The 10-year yield is now higher than all shorter-term yields.
The 30-year Treasury yield jumped by 6 basis points on Friday to 4.61%, now once again above the federal funds rate (4.58%), which the Fed actively brackets with its policy rates. It rose for six trading days in a row and is now just a hair from the November 13 rate-cut high (4.63%). Both of them are the highest since May 2024.
