10 Year T Breaks 1.00% Level on Stimulus, Inflation Expectations

A sell-off in treasuries today spiked the yield on the 10 year Treasury to 1.03%, the highest level since the March 2020 Covid meltdown. After the Georgia run off results became apparent, expectations are for more stimulus, further expansion of the Fed balance sheet, and (possibly) inflation. After hitting 1.00%, the next key levels are in the 1.25% to 1.50% range. The most recent “normal” treasury levels from late 2019 (pre-Covid) were about 1.75%. US Dollar value indices are dropping as the supply of our currency increases significantly each month. Stay tuned. By David R. Pascale, Jr. , Senior Vice President at George Smith Partners