I have written extensively about U.S. interest rates and their importance. Rising interest rates have substantial ramifications for many aspects of the current-day economy. My commentaries with regard to interest rates and the bond bubble are largely found under the “bond bubble” tag. From an intervention perspective commentary is found under the “Intervention” category.
Lately interest rates, including the 10-Year Treasury yield, have been sharply increasing. An excerpt from the November 18, 2016 Bloomberg article titled “Bond Traders Sound Alarm Amid Worst Rout Since 2001:”
The Treasury 10-year note yield rose 58 basis points over the past two weeks, or 0.58 percentage point, to 2.35 percent, according to Bloomberg Bond Trader data. It was the biggest climb for a similar period since 2001.
As a reference, here is a long-term chart of the 10-Year Treasury yield since 1980, depicted on a monthly basis, LOG scale:
(click on charts to enlarge images)(charts courtesy of StockCharts.com; chart creation and annotation by the author)
Here is a long-term chart of the 10-Year Treasury yield since 2008, depicted on a daily basis, LOG scale:
The Special Note summarizes my overall thoughts about our economic situation
SPX at 2181.90 as this post is written