Ten-Year Yields Rise

This is the highest the 10-year yields have been since October, and the longest stretch of rises since 2006. Analysts have interpreted this as a confidence in the prospect of an improving economy, and a decrease in the appeal of government securities as a haven asset.

This is also on the heals of the Federal Reserve last week raising its assessment of the economy. Overnight index swaps show that traders expect a 0.25 federal funds rate rise as early as 2013. Fear about Europe’s debt crisis has also moderated somewhat, which in addition takes away some of the haven appeal of US government notes.

Source: Bloomberg

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.