Investing.com – The yield on the U.S. 10-Year Treasury note hit its highest level since July on Thursday and could top 2% if the current stock-market rally continues.
The yield was at 1.956% at 1:03 PM ET (18:03 GMT), up from 1.812% on Wednesday. The yield is the highest since it reached 2.072% during the July 31 trading session.
The yield was pushed lower by three interest-rate cuts from the Federal Reserve starting on July 30 amid concerns about a global slowdown in the wake of the U.S.-China trade fight. It bottomed at 1.429% intraday on Sept. 3, a day the Dow Jones Industrial Average fell 285 points.
The yield has been rising steadily since Sept. 3 as investors began to bet that a portion of the trade dispute will be resolved soon and as data has continued to suggest U.S. job growth and consumer spending are both strong. The S&P 500 Index is up nearly 5.7% since the end of August and hit a new intraday high of 3,097.77 at Noon ET Thursday.
After the last Fed rate cut on Oct. 30, Fed Chairman Jerome Powell suggested the central bank would hold rates steady unless a crisis erupts.