IEI - The 10-Year Yield Is Less Than 7 Basis Points From New 2021 Highs

• Last week, Treasury bond futures reached 1.7064% in overnight trading, while the high for 2021 so far is 1.7760%.
• 5-year Treasury yields have long taken out their 2021 highs, and 2-year Treasury notes have tripled their yield in 2021.
• In general, longer-term maturities, like 10- and 30-year bonds, are more sensitive to economic activity and shorter-term maturities are more sensitive to Fed policy. The 2-year Treasuries reflect the fact that Fed tightening is coming.
• While credit spreads have not begun to blow out, the sharp rise in Treasury yields is pressuring junk bond prices even as their spreads remain tight.

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