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US Treasuries saw selling pressure pick up as investors returned Tuesday after a holiday, with the 10-year yield exceeding 3.25% to reach its highest level in 11 years.
What are the returns?
10-year Treasury Bill yield
TMUBMUSD10Y, + 0.41%
, which serves as a benchmark for a wide range of lending business, rose 2.4 basis points to 3.244%, exceeding the 3.25% threshold for the first time since late April 2011, according to FactSet. Yields and debt prices are moving in opposite directions.
The yield of the note at 2 years
TMUBMUSD02Y, + 0.01%
0.4 basis point to 2.881%, while the yield of 30-year Treasury bonds
TMUBMUSD30Y, + 0.62%
increased by 3.1 basis points to 3.435%.
US bond markets were closed Monday for the Columbus Day holiday. Rising US Treasury yields have periodically disrupted equity markets as the push towards longer-term multi-year highs of the curve is a bigger hurdle for equity returns, which could prompt investors to invest in equities. their money in bonds. They also increase the costs of borrowing for businesses.
The strong rise in Italian government bond yields this month has also disrupted investors, who fear fiscal turbulence will cause problems for the country's banks and lead to renewed financial stress in the region. even though the benefits have been largely controlled. That said, the yield of 10-year Italian government bonds
TMBMKIT-10Y, + 3.89%
resumed its rise on Tuesday, going from almost 11 basis points to 3.664%.
See: This is why investors remain worried about Italian banks and the "loop of fate"
What analysts say
"The 10-year US yield broke a key resistance earlier this month, suggesting a higher upside potential over the medium term. The next levels of resistance are 3.32% and 3.79%, the retracement levels of 50% and 62% compared to the decline of 2007-2016, "wrote analysts KBC Bank in Brussels.
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