PRESS ROOM
10-year US Treasury yield rises above 1% for the first time since March
Wednesday 06th January '21
10-year US Treasury yields fell below 1% in March 2020 for the first time and have since then stayed persistently low. An uptick above 1% at the start of January comes amid expectations that Democrats might end up controlling both houses of Congress giving the Biden administration more power to push their plans forward. This especially raises the prospect of a potentially larger fiscal stimulus – something the Democrats are in favour of. Markets are also developing optimism about the global economy in the second half of the year as vaccines get rolled out and the pandemic is reined in. An improvement in the economic outlook can cause yields to rise further.