The U.S. Department of the Treasury issues debt obligations, including 10-year Treasury notes. The debt obligations range in length, from short-term to very long-term. Debt that has an obligation of less than one year is called a bill; debt obligations from one to 10 years are called notes; and debt obligations that are longer than 10 years are called bonds. The 10-year Treasury note is important as many other interest-bearing securities are priced based on this heavily traded security. Since many investors around the world watch the rates of the 10-year Treasury note for signs of economic strength or weakness, it is important for all investors to be aware of the interest rate environment.
Could U.S. debt be reaching a breaking point?
In the chart below of the U.S. 10-year Treasury, it looks like yields on U.S. bonds have bottomed out and are rising again.
As the chart below shows, in June of 2012, the U.S. 10-year Treasury note traded close to $135.00. Now 10-year Treasury prices have broken below $131.00—a decline of a… Read More
With the uproar in Europe continuing unabated, the rush into the safety of bonds through “safe” countries like Germany and the U.S. is doing much to distort the mechanism of the financial markets, throwing a monkey wrench into the investment strategy of many people. With the yield of the 10-year Treasury now trading at approxima… Read More