July 25, 2018 | Rise in Long-Term Rates Could End the Revelry

Rates on long-term U.S. paper have remained stubbornly buoyant since topping in mid-May and now appear to be gathering strength for a leap to new multiyear highs. If so, the 30-Year Bond could hit 3.745%, with 3.319% possible on the Ten-Year Note. A move to those levels would add considerable drag to the U.S. economy, sapping energy from a housing market that has already turned down and from an auto sector that is threatened by a 25% tariff on imports. The stock market has shrugged off such worries in recent months, but there are reasons to doubt Wall Street’s bravado will continue if long-term rates are about to move significantly higher.
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Rick Ackerman July 25th, 2018
Posted In: Rick's Picks