Back to Main

Where Will Rates Go From Here? - Real Time Insight

Posted: 7/23/2013 12:29:00 PM
Referenced Stocks: IEF;LBND;TBF;TBT

Throughout May and June, the yield on the 10-year Treasury surged more than 100 basis points. This sudden jump led to big losses in shares of interest-rate sensitive stocks like homebuilders and high-yielding dividend stocks.

However, yields have started to pull back a bit. Since hitting its recent high of 2.72% on July 5, the yield on the 10-year has fallen 20 basis points and seems to be leveling off around 2.50%:

But is this just a temporary reprieve before rates proceed higher again? Or will rates just consolidate around 2.5% until the timeline for Fed tapering becomes clearer? Or are we going to see sub-2% again?

Post your response below.

ISHARS-7-10YTB (IEF): ETF Research Reports

PWRSH-DB 3XL25T (LBND): ETF Research Reports

PRO-SH 20+ TBI (TBF): ETF Research Reports

PRO-ULS L20+YRT (TBT): ETF Research Reports

To read this article on click here.

Zacks Investment Research