Posted on Feb 19, 2019 2021 at 7:01Updated Feb 19, 2019 2021 at 7:07
Rising long-term interest rates are causing turmoil in the markets. Admittedly, the latter remain low, very low, and even negative in Europe. But the increase that began this summer has accelerated considerably in recent weeks. In the United States, the yield on the 10-year US Treasury bill has gained more than 40 basis points (1 basis point = 0.01%) since the start of the year. As much as in the last five months of 2020. The US long-term benchmark rate (10 years), which hit a historic low of 0.51% on August 4, is now moving around 1.30%.
In Europe, it was not until early November that “long” rates began to recover, with the American election and the prospect of vaccination campaigns. But the tensions are, there too, real and they are intensifying in recent days. Since the start of the year, 10-year rates have risen by more than 20 basis points in Germany and France.