Fear Not, 10-Year USTs Will Not Rise Above 3.5% As Bull Market In Bonds Continues: Capital Econ

The yield on the 10-year US Treasury spiked above 2.6% overnight on Thursday, taking it to a level not seen since March of last year. This is just the latest in a series of moves higher Treasury yields have made since bottoming at 2.03% at the beginning of September.

What happens next will be critical for both Fed policy and stocks. The concern is that yields will continue to push higher, forcing the Fed to raise interest rates more aggressively, which could slow the economy and make it more expensive for people and businesses to get loans.

Two of the bond markets most prominent personalities have already urged caution. Bill Gross, the manager...