FYI: At this point, it’s more likely a matter of when -- not if -- the 10-year Treasury yield hits 3 percent. And that apparent inevitability raises a pressing question: How to trade when it happens?
The 10-year yield hasn’t been above 3 percent since January 2014 and since the start of last year, bond gurus like Jeffrey Gundlach at DoubleLine Capital and Scott Minerd at Guggenheim Partners have highlighted the level as critical to determining whether the three-decade bull market in bonds is at an end. It’s also seen as the point at which equity markets might crack and the dollar could halt its slump against other major currencies.
Here’s what to watch for when the benchmark 10-year Treasury yield reaches that much vaunted number:
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-02-22/bond-market-guide-to-trading-when-10-year-treasury-yields-hit-3
