The 10 Year Yield Movement Today = 👍
Overall, the market had a great week last week based on pivot hopes and good inflation data.
The 10 year Treasury bond yield dropped from 4.16% to 3.81% on the week and the S&P (stock market) shot up 5.9% !
The Bond market was closed on Friday while the stock market was busy ripping. So today as the bond market opened back up, we got to see how it would process the good inflation news.
The good news is, the 10 year yield rose only slightly higher today to 3.874% indicating some confidence from the bond market in this stock market rally.
What is the 10 Year?
A 10-year Treasury is a bond that guarantees interest plus repayment of the borrowed money in a decade. The 10-year Treasury is just one of a handful of securities issued by the U.S. government.
The 10-year yield can be used as a sign of investor sentiment about the economy.
If the yield rises, it is an indication that there is less demand for bonds and investors would rather buy higher-risk and higher-reward equities.
If yields fall, that means that there is a higher demand for bonds and less of an appetite for higher risk investment vehicles.
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