The yield on 10-year U.S. Treasurys jumped to above 1.6 percent on Thursday, its highest level since before the pandemic struck.
The 10-year yield got as high as 1.614 percent, up from yesterday’s close of 1.389 percent.
Bond yields rise as bond prices fall.
The yield on the 30-year Treasury rose to 2.323 percent. The five-year yield climbed as high as 1.91 percent.
Analysts think the rising yields show investors are positioning for higher inflation based on the the Biden administration’s plan to spend $1.9 trillion in a covid relief bill despite evidence that the economy is recoverying faster than expected.
Stocks sold off alongside bonds. The Dow Jones Industrial Average was down 550 points midday, around 1.5 percent. The Nasdaq declined by 2.6 percent and the S&P 500 by 1.9 percent. Information Technology was the worst-performing sector, off by 2.88 percent.