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10-Year Treasury Yield Rises To 7-Year High

Published Wed, 16 May 2018 08:15:42 -0400 on Seeking Alpha

The benchmark 10-year Treasury yield edged up to 3.08% on Tuesday (May 15), marking a new seven-year high, based on daily data published by Treasury.gov. The implied inflation forecast via Treasuries continued to advance as well, signaling that the market is pricing in firmer pricing pressure in the months ahead.
Notably, the yield spread between the nominal 5-year Treasury less its inflation-indexed counterpart ticked up to 2.15%, the highest since 2013. The rise suggests that the crowd anticipates that the official inflation indexes will continue to trend higher - a development that would likely reaffirm and perhaps accelerate the Fed's current program of tightening monetary policy.

The April report on consumer price index (CPI) confirms that pricing momentum is heating up, albeit following a period of subdued inflation. In a sign of the times the CPI's headline and core readings simultaneously posted year-over-year increases above 2% - the Fed's inflation target - for a second month. That's the first time that headline and core indexes have been that high in more than a year.

For the moment, a mildly hotter level of inflation isn't worrisome, in part because the upswing coincides with expectations for stronger economic growth. Several estimates of US GDP growth for the second quarter are projecting a rebound after a subdued gain in Q1. Yesterday's April data on retail spending offers support for thinking positively as consumer... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
VANGUARD EXTENDED DURATION TREASURY ETF 109.18   0.0 0.00 0.00 3.09
SPDR BARCLAYS CAPITAL 1-3 MONTH T-BILL ETF  

VANGUARD EXTENDED DURATION TREASURY ETF - EDV
VANGUARD EXTENDED DURATION TREASURY ETF - EDV  


Older articles featuring Vanguard Extended Duration Treasury Etf (EDV):
Yield Curve?
Mortgage Rates Head To 6%, 10-Year Yield To 4%, Yield Curve Fails To 'Invert,' And Fed Keeps Hiking
Where Is The U.S.-Germany Yield Spread Headed?
Mind The (U.S.-Germany Yield) Gap
These 'Gradual' Rate Hikes Start To Add Up: U.S. Treasury Yields Up To 3 Years Hit 10-Year Highs
McCullough: What To Do When The Yield Curve Inverts
Macro Musings Podcast: Tim Duy On The Yield Curve, Inflation Targeting, And The Federal Reserve Under Jay Powell
U.S. Yield Curve Looks Hell-Bent On Inverting, 'Flattest' Since August 2007
Will The Narrowing Yield Curve Force The Fed To Rethink Policy?
What Does The Current Slope Of The Yield Curve Tell Us?

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