The yield on the U.S. 10-year Treasury jumped to its highest level since 2014 on Friday morning, underlining a wider move in bond markets caused by central banks moving away from financial crisis policies.
"We are not surprised by the movement because we believe that the Fed will raise rates by three or four times this year, more than what is currently priced by the market even after the recent sell-off," David Tan, global head of rates at J.P. Morgan Asset Management, told CNBC via email.
The yield on the 10-year was last seen at 2.656 percent at 3:59 p.m. ET, while the yield on the benchmark 30-year Treasury bond rose to 2.928 percent. Bond yields move inversely to prices.
While 2.63 percent is not a historically high yield for the 10-year note, the rise in long-term rates can tempt investors to shift funds into bonds instead of equities. Technical analysts believe that the threshold represents a critical level, a sign that the long spell of low yields is coming to an end.
"The pain point comes at 2.63 percent, where everybody believes that's the breakout, and everyone will be keying on that," said Art Hogan, chief market strategist at B. Riley FBR. "This is a more-than-three-year range that we're attempting to break out of here."
The 10-year Treasury is considered a benchmark sovereign bond for the U.S economy, that helps price all sorts of loans and mortgages in the country. It has now hit a level not seen since September 2014, above peaks reached following the election of President Donald Trump.