Potential for 10-Year U.S. Treasury Yield to Rise Further Seen Contained
Dow Jones
Yesterday
0520 GMT - The potential for the 10-year U.S. Treasury yield to rise further appears limited, according to DZ Bank analysts. They estimate that the term premium--the additional yield investors demand for buying a longer-dated bond versus a shorter-dated one--on 10-year U.S. Treasury yields is 91 basis points. That is in line with the average level since the early 1990s but also the highest level since 2014. This, together with the anticipated scaling back of markets' hawkish interest-rate expectations, keeps the scope for further rises in yields manageable, they say. The 10-year Treasury yield is down 5 basis points to 5.193% in Asian trade, according to Tradeweb.
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