10-Year Treasury Note

Chart of the Week for August 8-14, 2003

The 10-year Treasury Note has seen a recent dramatic increase in its yield. The Note closed August 1 at a 52-week high of 4.427% following a 45-year low of 3.11% from June 13. Yields have not risen that fast at any point since 1987. This yield increase translates into an approximate 10% loss for investors in the 10-year Note, since bond price and yields move in opposite directions. The Note’s yield has seen spikes similar to this one in the past and has historically corrected itself.

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