The 10-year benchmark US Treasury (US10Y) closed today at 2.94%. While the rate still sits below the year’s high of 3.12% set back on May 17th, it has climbed modestly throughout the month of June after closing out May at 2.76%. Investors have become wary as President Trump has requested tariffs to be placed on an additional $220 billion in Chinese goods. The common sentiment on Wall Street is that an extensive trade war would drive down the yield of the US10Y as investors look for the safest place for their investment. All national and foreign investors will keep a keen eye on potential trade wars between the US and their partners as they look for the oscillating US10Y rate to settle back down.
Interest Rate Update – June 2018
June 20, 2018