The 10 Year Treasury Note has settled above three percent. After many attempts at breaking above 3 percent, the note’s yield was able to settle above the 3 percent mark that it has tested multiple times this year. The market is now starting to react to the recent developments and the potential future of interest rates levels. Many are now expecting that rates will continue to rise to a normal level after years of historically low interest rates.

It remains to be seen how rising rates will effect the financial markets and the economy. The stock market has recently reacted negatively to the current interest rate environment. The reaction was delayed, however. The 10 year note had risen above 3 percent a while back and the markets have just started to take into account the trajectory of rates. In addition to the 10 year, the 13 week treasury bill has seen its rate climb significantly this year.

Going forward, watching the outlook for further rate increases will be important. A 3.5 percent yield on the 10 year is a key level to watch out for.