{"id":37422,"date":"2018-09-06T06:46:38","date_gmt":"2018-09-06T11:46:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37422"},"modified":"2018-09-06T06:46:38","modified_gmt":"2018-09-06T11:46:38","slug":"these-gradual-rate-hikes-start-to-add-up-us-treasury-yields-up-to-three-years-hit-10-year-highs","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37422","title":{"rendered":"These \u201cGradual\u201d Rate Hikes Start to Add Up: US Treasury Yields up to Three Years Hit 10-Year Highs"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2018\/09\/05\/all-treasury-yields-1-month-1-year-2-year-up-to-3-years-hit-10-year-highs\/\">These \u201cGradual\u201d Rate Hikes Start to Add Up: US Treasury Yields up to Three Years Hit 10-Year Highs<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>An entire generation working on Wall Street has never seen Treasury yields this high.<\/strong><\/p>\n<p>The one-month treasury yield rose to 2.0% yesterday at the close and is at about the same level today, the highest since June 10, 2008. It is starting to price in a rate-hike at the Fed\u2019s September 25-26 meeting. This rate hike, the Fed\u2019s third this year, would bring its target to a range between 2.0% and 2.25%.<\/p>\n<p>The three-month yield, currently at 2.14%, has reached the highest level since February 26, 2008. Back then, as the Financial Crisis was taking its toll, yields were going through enormous volatility, as the chart below shows. During that volatile period in mid-2008, the three-month yield spiked for a day to 2.07% on June 16, but never got back to the 2.14% in February that year:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-44335\" src=\"https:\/\/wolfstreet.com\/wp-content\/uploads\/2018\/09\/US-Treasury-yields-3-months-2018-09-05.png\" alt=\"\" width=\"498\" height=\"434\" \/><\/p>\n<p>It hasn\u2019t been exactly a whirlwind rate-hike cycle with one-percentage-point rate hikes per meeting, <em>\u00e0 la<\/em> Paul Volcker in the early 1980s, but in their \u201cgradual\u201d \u2013 as the Fed never tires to point out \u2013 easy-to-digest, no-surprises manner, the rate hikes are starting to add up. There is an entire generation working in the finance industry and on Wall Street who has never seen Treasury yields this high. They\u2019re in for a learning experience.<\/p>\n<p><ins class=\"adsbygoogle\" data-ad-client=\"ca-pub-8212587530282873\" data-ad-slot=\"1767955946\"><\/ins>The one-year yield rose to 2.49% at the close yesterday, and remains at about the same level today, beating the 2.48% on June 25, 2008:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-44337\" src=\"https:\/\/wolfstreet.com\/wp-content\/uploads\/2018\/09\/us-treasury-yields-1-year-2018-09-05-.png\" alt=\"\" width=\"497\" height=\"385\" \/><\/p>\n<p>The two-year yield closed at 2.66% yesterday and trades at the same level today, the highest since July 25, 2008 (when it closed at 2.70%):<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-44338\" src=\"https:\/\/wolfstreet.com\/wp-content\/uploads\/2018\/09\/us-treasury-yields-2-year-2018-09-05.png\" alt=\"\" width=\"490\" height=\"391\" \/><\/p>\n<p>The three-year yield, at 2.73% yesterday, and edging down just a tad at the moment, is at the highest level since August 14, 2008:<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>These \u201cGradual\u201d Rate Hikes Start to Add Up: US Treasury Yields up to Three Years Hit 10-Year Highs An entire generation working on Wall Street has never seen Treasury yields this high. The one-month treasury yield rose to 2.0% yesterday at the close and is at about the same level today, the highest since June [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,431,3650,10841,860,4254,4255],"class_list":["post-37422","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-interest-rates","tag-us-federal-reserve","tag-us-treasury-yields","tag-wall-street","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37422"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37422\/revisions"}],"predecessor-version":[{"id":37423,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37422\/revisions\/37423"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}