After trading above 3 percent since September 2018, the Ten Year Note has fallen below 3 and is now trading at 2.86 percent. Recent developments in the overall economy could be behind the recent fall in Treasury yields. In addition, markets may be taking into account the future decisions that the Federal Reserve will make in regards to interest rates.
The 10-year note has had trouble staying above 3 percent all year. Every time it has it has cleared 3 percent it has fallen back below 3 within the next couple of months. How long will the 10-year note stay below 3 percent and will the note close 2018 below 3? Right now it looks like it may remain below 3 for the remainder of 2018. On another note, the major stock indices are trading in step with yield movements of the 10-year note.
Going forward, it will be interesting to see if the 10-year note will be able to break above 3 percent once again.