The 10-Year Treasury Yield Just Topped 5% for the Second Time in Almost 20 Years. Is This Turning Point a Warning for Your Portfolio?
The bond market has been the center of attention.
Overview
The bond market has been in full focus recently. There is a lot for investors to unpack.
On Sept. 16, the Kevin Warsh-led Federal Reserve raised the federal funds rate by a quarter of a percentage point to a range of 3.75% to 4%. This was the first rate hike since July 2023. Fighting inflation is the central bank's current priority.
Details
Despite the benchmark rate remaining unchanged for more than three years, inflationary pressures, as well as concerns about the sustainability of the U.S.'s massive $40 trillion federal debt burden, have increased risk in investors' eyes. The U.S. 10-year Treasury yield has soared 21% in the past 12 months (as of Sept. 17).
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.