PRESS ROOM
US 10-year yields rise to pre-pandemic levels
Thursday 25th February '21
10-year US Treasury yields have risen to levels last seen in February 2020 – before the pandemic spread to the US. 10-year yields are currently hovering around 1.35% – a significant increase from as low as 0.5% in August last year. Curve steepening is a symptom of rising inflation expectations driven by a combination of the following: vaccine optimism and the notion of pent-up demand fuelling economic activity; ongoing monetary accommodation from the Fed; and further fiscal stimulus from the US government.