The yield on the 30-year US Treasury bond jumped above 2% on Tuesday to hit the highest level in 12 months.
Longer duration yields have risen to multi-month highs in recent days, a sign that investors anticipate a stimulus-driven rebound in economic activity and inflation.
“When 30-year yields exceed 2% and inflation starts to pick up at the same time, they serve as clear main indicators of economic growth“said Michael Contopoulos, director of fixed income at Richard Bernstein Advisors LLC, according to the Wall Street Journal.
However, yields at the short end of the bond market curve remain low, and the Federal Reserve is expected to keep rates low for a long time.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
