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home / news releases / RJZ - The Fed Would Love A 2% 10-Year Treasury


RJZ - The Fed Would Love A 2% 10-Year Treasury

  • The reason why the Fed has not really signaled any concern about the spike in Treasury yields to 1.6% is that the Fed funds rate is anchored at 0-0.25% and any sell-off in the Treasury market expands net interest margins in the financial sector.
  • The Fed wants a higher 10-year Treasury yield but not too high so that it does not become a problem for the economy. The Fed would not allow a Treasury yield spike that would cause the stock market to sell off like it did last March.
  • Rising Treasury yields are not a U.S.-only phenomenon. Government bond yields in Europe are also moving higher for the same reason they are in the U.S. - the reopening of the economy promises higher inflation and faster economic growth.

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The Fed Would Love A 2% 10-Year Treasury
Stock Information

Company Name: AB Svensk Ekportkredit ELEMENTS Linked to the Rogers International Commodity Index - Metals Total Return Structured Product
Stock Symbol: RJZ
Market: NYSE

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