Tag: bond yields

Bond Yields Roil Markets, Gold/Silver Drop

Bond Yields Roil Markets, Gold/Silver Drop

As financial markets sold off this week, precious metals got dragged down in the selling. The culprit, once again, was rising bond yields. On Thursday, the 10-year Treasury climbed above 1.5%. While still low on a historical range, the upside momentum has investors concerned. Over the past seven months, the 10-year yield has tripled from a low of just 52 basis points. The 10-year note serves as a benchmark for mortgage rates as well as risk premiums in the equity markets. Elevated price-to-earnings ratios in the S&P 500 are more difficult to justify in a higher interest rate environment. As we’ve noted, real interest rates are also a headwind to […]

Continue Reading