Interest rates increase was really a hot topic in last two weeks since US 10 Years Treasury Note hits above 3% for first time since 2014. Market also react negatively with full of comments on interest risk due to this increase.
“Auto loans, home mortgages, and other loans are tied to the benchmark 10-year yield. Investors fear that higher interest rates could start to eat into corporate profits and also signal that more inflation is coming.” This is why everyone is paying so much attention on the 10 years Treasury Note.
Some even talking about “ Inverted Yield Curve “ ….
Below from Investopedia.com :
What is an 'Inverted Yield Curve' An inverted yield curve is an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This type of yield curve is the rarest of the three main curve types and...
