Market Moves
The 10-year Treasury yield climbed above the 5% mark to 5.004%, up by a bit more than 5 basis points. The 2-year note rose by a bit more than 5 basis points to 4.743%, while the 30-year yield increased 4 basis points to 5.336%.
One basis point equals 0.01% - that explains why a move of 5 basis points is a move of 0.05 percentage point. Yields and bond prices move in opposite directions, so higher yields reflect lower bond prices.
Snapshot Across the Curve
A table of specific yields showed:
- U.S. 10 Year Treasury at 5.00% with a change of +0.053.
- U.S. 1 Month Treasury at 3.89% with a change of +0.003.
- U.S. 1 Year Treasury at 4.419% with a change of +0.042.
- U.S. 2 Year Treasury at 4.741% with a change of +0.051.
- U.S. 30 Year Treasury at 5.335% with a change of +0.039.
- U.S. 3 Month Treasury at 4.08% with a change of +0.012.
- U.S. 6 Month Treasury at 4.261% with a change of +0.019.
A separate display listed U.S. 10 Year Treasury RT Quote | Exchange at 5.00% with +0.053 and a yield timestamp of 10:39 AM EDT.
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Why This Matters For Your Portfolio
Yields fell briefly right after the rate-hike announcement but moved higher as investors looked for clues about the Fed's path. Earlier in the week the 10-year reached 5.041%, its highest level since 2007, which shows recent volatility around longer-term rates.
The Fed raised rates Wednesday for the first time in three years and signaled more tightening could come, leaving investors parsing those moves when sizing bond risk and return in their portfolios.
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