Benchmark Treasury yields hit 16-year high
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The yield on 10-year Treasurys climbed to a new 16-year high on Thursday.
Why it matters: The 10-year U.S. government bond is the most widely followed gauge of long-term interest rates.
- It's also a key input into stock market valuation models.
Driving the news: T-note yields jumped to nearly 4.5% in early trading on Thursday morning shortly after positive data on the job market was released.
Context: The rise in 10-year yields comes after the Federal Reserve on Wednesday left interest rates untouched, but simultaneously signaled that it's unlikely to cut rates any time soon, since the U.S. economy still seems strong.
- New weekly jobless claims numbers out Thursday also reinforced the notion that the Fed's efforts to curtail inflation haven't damaged growth much.
Between the lines: At the moment, good news for the economy isn't doing much for the stock market, as the higher rates have been weighing on the hugely important tech sector, as they often do.
- The tech heavy Nasdaq composite and the S&P 500 were both down about 1% as of Thursday afternoon.
- The S&P is on track for its worst month since a nearly 6% drop in December.
