The 10-year U.S. Treasury yield reached 5.12% Wednesday, its highest since 2007, amid rising oil prices and stronger-than-expected business activity. New York Fed President John Williams said it was reasonable to think the Fed may need another rate hike before year-end.
The last time the 10-year yield was this high was July 2007; three months later, the global financial crisis began as the housing meltdown shocked the world. The Nasdaq Composite fell 56% over the following 16 months, the Bull Theory team noted. The article says this parallel alone does not show a crash is near, though the rise may warrant investors reining in their appetite for stocks.
Williams echoed Fed governor Michael Barr, who said Wednesday that additional rate hikes would be needed. The 30-year Treasury yield touched 5.37%, while the five-year yield also reached a 2007 high.
