3/1/2021
By Charles Payne CEO & Principal Analyst

What’s all the commotion about?

The yield on the ten-year U.S. Treasury was north of 16.0% back in September 1981. And then it proceeded to move lower and lower and lower - and before you knew it, there was a forty-year bull market in bonds, as the yield skied downhill before reaching the bottom last August.

Along the way, the yield formed a trading channel that occasionally saw spikes that approached the top.  Maybe I wasn’t paying close enough attention, but outside the period of the so-called bond vigilantes that forced President Clinton to adjust his policies, I cannot recall this kind of hysteria.

I knew a “spike” in yields would shake up the market, but looking at it from a historic perspective (see red circle), the move makes you think, “jeez, that’s what is causing all the commotion?”

U.S. Ten Year Yield

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Charles Payne
Wall Street Strategies

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