The Importance of the US Treasury 10-year Interest Rate
The US 10-year Treasury rate is an important reference point of market expectations for future inflation and US long-term interest rates. It also impacts consumer mortgage rates. The 10-year Treasury note is also a way for investors to invest money in the safety of the US government, for a decade, and earn interest on their Investment.
Key Takeaways:
Treasury yields and mortgage rates that track the US 10-year rate, rose after the Fed indicated last year their policy of low rates was coming to an end.
The Fed held short-term interest rates unchanged and in their last meeting on March 19th, Treasury and mortgage rates have since shifted lower as indications of an economic slow-down are developing.
Yesterday, the US 10-year Treasury rate went crashing through the important 4.0% level meaning that investors are concerned about the state of the US economy, resilience of the US consumer and the impact of tariffs
