The IMF trims its economic growth forecast again as the U.S.-China trade war continues, Brexit worries linger and inflation remains muted.Economyread more
Citigroup thinks Tesla investors hoping for a post-earnings rally later this week should scrutinize a pair of related financial metrics.Investingread more
Olive branches were extended from both China and the U.S. as the two nations are set to restart face-to-face trade negotiations after a monthlong truce.Marketsread more
Coca-Cola topped Wall Street's expectations for earnings and revenue.Food & Beverageread more
New disclosures show Facebook and Amazon each spent more than $4 million on lobbying activity in the second quarter of 2019.Technologyread more
Boris Johnson, one of the biggest voices in the Brexit movement, wins the Conservative Party leadership race by a 2-1 margin.Europe Politicsread more
Disney can nearly double its earnings by 2024, Morgan Stanley said in a note to clients on Tuesday.Investingread more
Amazon is expected to report its second-quarter earnings on Thursday.Investingread more
The largest residential brokerage company in the U.S. is partnering with the largest online retailer in a strategy to boost sales for both.Real Estateread more
Here are the biggest calls on Wall Street on TuesdayInvestingread more
Canaccord Genuity's Tony Dwyer believes stocks are about to fall as much as 5% from their all-time highs.Trading Nationread more
Last week, Wall Street was abuzz over a surge in the yield for the benchmark 10-year Treasury note, which has repeatedly topped levels not seen since 2011.
These days, when rates rise, stocks fall. That's because rising rates ripple throughout the economy, raising costs for companies that want to issue debt, raising mortgage rates for homeowners and buoying credit card bills for the typical consumer.
The yield rose to as high as 3.24 percent on Friday. Bond traders are also impressed by the pace of the increase. The yield on the 10-year note has climbed about 15 basis points this week alone after trading in an innocuous range around 2.8 percent for much of summer 2018.
While short-term interest rates are most sensitive to the activity of the Federal Reserve — which hiked the federal funds rate a third time for the year in September — the market dictates long-term rates.
It is used as a benchmark for many other types of debt, including corporate and agency bonds, such as Fannie Mae and Freddie Mac. Movements in the 10-year government rate can also have a direct impact on consumers.
The rate is a barometer for 30-year fixed mortgage rates, auto loans, student loans and credit card annual percentage rates.
The long-term chart of these rates shows how they all move in tandem with the 10-year yield.
10-year Treasury rate vs. mortgages, auto loans and corporate debt (click to enlarge)
Source: Board of Governors of the Federal Reserve, Freddie Mac. Retrieved from FRED.
The average 30-year fixed-rate mortgage rate decreased 1 basis point to 4.71 percent last week, just off the highest level in seven years, according to Freddie Mac.
Here is a list of the financial instruments the 10-year Treasury yield impacts: