1 week ago
Ten-Year Treasury Yield Takes Wild Ride Toward 5%
The 10-year Treasury yield is an important interest-rate measure.
It has been moving sharply toward 5%.
The last time it was this high was in 2007.
That year, the Federal Reserve started cutting interest rates.
Officials acted after early signs of a crisis appeared.
The crisis later became known as the global financial crisis.
Rates then stayed very low for a long time.
During most of the 2010s, the economy grew slowly and inflation stayed low.
The 10-year Treasury yield is making a volatile move toward 5%.
The yield was last this high in 2007.
In 2007, the Federal Reserve began cutting interest rates.
Those rate cuts followed early signs of the global financial crisis.
The cuts began a long period of ultralow rates during the 2010s, when growth was slow and inflation remained low.
- Who
- The Federal Reserve and investors in 10-year Treasury securities.
- What
- The 10-year Treasury yield is undergoing a volatile move toward 5%, reaching a level last seen in 2007.
- Where
- When
- The comparison point is 2007; the following period of ultralow rates lasted through much of the 2010s.
- Why
- In 2007, the Federal Reserve cut interest rates after early signs of what became the global financial crisis; rates later remained low amid slow growth and low inflation.
Key facts
- Financial measure
- 10-year Treasury yield
- Current direction
- Moving toward 5%
- Last comparable level
- 2007
- Federal Reserve response
- Began slashing interest rates in 2007
- Reason for response
- Early signs of the global financial crisis
- 2010s conditions
- Slow economic growth and low inflation
- Rate environment
- A long period of ultralow interest rates
Sources
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