Today, we check in with one of the most important numbers in the world... the yield on the U.S. 10-year Treasury bond.
The "10-year" is the most widely followed gauge of how much interest Uncle Sam must pay to borrow money. Many analysts, like our colleague Porter Stansberry, expect this rate to head higher.
The higher interest rate argument says the U.S. government is racking up huge debts right now... and just as a bank would demand higher rates to loan money to the town drunk versus the town preacher, Uncle Sam's creditors will eventually demand higher rates as well.
Below is the past two years of the 10-year yield. In the last nine months, the 10-year yield has fluctuated between a high of 3.94% and a low of 3.17%. But in a series of "higher highs and higher lows," this number has crept back up to the 3.6%-3.8% area.
Keep an eye on this number. If it pops above its 2009 high and reaches 4%, it's a sign the "higher interest rate" crowd is right... and Uncle Sam is going to have some ugly interest payments ahead.
No comments:
Post a Comment