The yield on the benchmark 10-year Treasury note started the week on a tear, jumping to 2.99 percent and toying with the key 3 percent level that could trigger a reaction across global financial markets.
The 10-year yield was at 2.979 percent at 7:05 a.m. ET, after topping 2.99 percent earlier Monday. The yield on the 30-year Treasury bond was higher at 3.167 percent. Yields move inversely to bond prices.
Should the yield hit 3 percent, it would be the note’s highest rate since January 2014. The benchmark for mortgage rates and other financial instruments has jumped in April on signs of increasing inflation and as the Federal Reserve signaled more rate increases are to come this year.
Earlier in April, the Fed released the minutes from its March meeting stating that “all participants” expected a strengthening economy and rising inflation in coming months. Also this month, prices for everything from oil to wheat have jumped, sparking concerns inflation may be running hotter than investors would like.