Nov 19, 2020
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About this Deal
New York (CNN Business)Bond yields are super low. That means it doesn't cost a lot of money to take out a loan, no matter if you're a consumer, business or the federal government. But yields have inched higher since the election. That may raise problems as the incoming Biden administration hopes to unveil more stimulus.
The yield on the 10-year US Treasury is back near 0.9% and got close to 1% last week. That's the highest level since the days before the Covid-19 crisis in mid-March.
It wasn't long ago that some experts wondered if US bond yields could fall further and even approach zero.
After all, the 10-year plunged to an all-time low of 0.32% in early March as Covid-19 fears ground the US economy to a halt and sent shock waves throughout Wall Street. Worries about the recovery still persist.
"We will be living in a low-growth and low-rate environment for many years to come," said Kent Insley, chief investment officer of wealth manager Tiedemann Advisors, in an interview with CNN Business.
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