Long-Term Interest Rates Set to Resume Downtrend?

While long term interest rates have risen sharply over the last four weeks, the trend over the last eight months has clearly been down.  As noted in the chart below, even as the yield on ten-year treasuries has fallen from over 5% in June down to under 4% now, there have been three sharp reversals where yields increased by about 40 basis points over a one-month period.  If the current period ends up resembling the prior two periods, investors should expect to see a resumption of the downtrend in the weeks ahead.

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Comments

[Greg Feirman]

Long term interest rates are going higher because inflation is now on the radar.