U.S 10-Year Treasury Yield Rises to 1%, the First Time Since March

U.S 10-year Treasury yield hit 1% for the first time since March in overnight trading on Tuesday, amid Senate runoff in Georgia, reports CNBC. The benchmark rate breached the key psychological level, while the yield on the 30-year Treasury bond also traded higher.

• After surpassing the 1% psychological level, analysts expect the 10-year Treasury yield to spend time in the 1% to 1.20% range.
• Eyes now turn to Senate contests in Georgia, with a Democrat-controlled Senate expected to push for bigger stimulus, leading to more inflation and higher yields.
• Earlier this week, the breakeven rate for 10-year inflation expectations touched 2% for the first time in more than two years. 
• The 10-year rate has faced a sluggish rebound and tumbled to a record low of 0.318% in March amid a historic flight to safe assets during the pandemic
• Despite the stimulus anticipations, the Treasury yield is weighed down by the persisting COVID-19 uncertainty and uneven economic data

10-year Treasury rate is currently at 0.96%