The US 10-year Treasury note yield rose to its highest in 14 months on Thursday as investors expect higher inflation as the economic recovery in that country gathers steam.

Share Market Live

NSE

The yield on the benchmark 10-year Treasury bonds hit 1.71 percent, its highest in almost 14 months.

“If everything is great and if the global economy is going to have great recovery on the back of vaccination being successful and defeating COVID-19 globally then all that positive sentiment ultimately should see a rise in equity price, rise in bond yields,” said Jan Lambregts, Global Head of Financial Markets Research at Rabobank in an interview with CNBC-TV18.

“Us bond yields are high by recent standards but by historic standards, it is still very low,” he stated.

“I think investors have got this unique opportunity to gauge where countries are in terms of fighting COVID-19. Another factor that is interesting is, once the US is done with vaccinating, which of the EMs will send some of its surplus supplies to have vaccinations. Therefore by definition, we will be early on in terms of pushing COVID-19 back – again opportunities there for markets to diverge,” he said.

For more, watch the video

(Edited by : Abhishek Jha)

First Published:Mar 18, 2021 7:47 PM IST