Treasury yields hit the highest levels since March on Monday as more investors begin to believe the Federal Reserve may sound a bit more hawkish in its statement Wednesday. Here's how to trade it using history as a guide.
"Our monetary policy analysis suggests that the Fed will need to tighten policy by more than discounted in the bond market, while both the ECB and BoJ may need to ease further," Goldman Sachs chief economist Jan Hatzius wrote to clients Saturday. He also stated many of the monetary policy models Janet Yellen supported in the past now "suggest that rates will need to rise significantly."
The two-day Federal Open Market Committee meeting kicks off Tuesday, a day after the 10-year Treasury yield hit 1.90 percent, the highest since March 28.
To find trades that would work if rates continue to spike post-Fed, CNBC Pro used Kensho to find out which types of stock perform the best and worst when the 10-year yield rises 10 basis points or more in one week.
