Kensho Trade: Rates on the rise before Fed

NYSE Trader
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Yields on the U.S. 10-year Treasury are spiking back to near the key 2 percent level ahead of the Federal Reserve interest rate decision next week. How can investors profit from the rate redux?

The latest catalyst was Thursday as Mario Draghi made clear the European Central Bank continues to be worried about its region's economy by announcing a bigger quantitative easing package.

This makes the U.S. the one major developed economy with a tightening bias in its monetary policy.

10-year Treasury yield one-year chart

Source: Factset

Using data from Kensho, a tool designed to quantify historical market events, CNBC Pro ran a study to find what happens when the 10-year yield rises significantly over a one-month period. If this ramp in yields keeps going back to December 2015 levels, history shows certain sectors of the market do better and worse.