US Treasury yields climb on reflation expectations
What happened. The US 10-year Treasury yield rose to about 1.6% in late February 2021 from around 0.9% at the start of the year as markets priced in a large stimulus package, vaccine-led reopening and higher inflation.
Why it matters for investors. Rising yields reduce the present value of long-duration assets and prompted a rotation away from high-valuation growth shares, which also affected emerging-market flows.
Event date: 25 Feb 2021. Source: US Department of the Treasury daily yield curve rates.
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