US 10 year yield
The US 10 year yield is trading at 4.211%. The high yield rate 4.215%. That has taken the yield above the August for high yield of 4.204% and to the highest level since November 8, 2022. The high yield from 2022 reached 4.335% back on October 21.
A couple contributing factors include:
- Supply. The US treasury is boosting the size of the treasury auctions to finance surging budget deficits.
- Fitch cut the credit rating of the US government debt from AAA to AA+
- The consumer remains strong with Atlanta for GDPNow estimating Q3 growth at 4.1%