US10Y hits a 2-month high and breaks above its 100-day moving average

Treasury yields climbed on Monday, with the benchmark U.S. 10-Year Treasury Yield (US10Y) reaching its highest level in more than two months, a mark last seen on September 26.

The session’s move higher came as investors moved away from bonds, driving prices lower and yields higher. The US10Y rose by four basis points, and is now hovering near the 4.18% level. 

Despite the recent uptick, the US10Y still remains noticeably lower on the year. However, Monday’s gains pushed the instrument above its technical 100-day moving average, signaling renewed momentum in the market. 

The rise in yields was not limited to the 10-year note. Across the Treasury curve, yields advanced, reflecting a broader re-pricing of interest rate expectations.

Analysts and investors are now closely monitoring the curve for potential implications on borrowing costs, investment strategies, and economic forecasts as the FOMC looks to announce its latest rate decision later this week. 

Outlined below are a grouping of fixed income exchange traded funds that investors can continuously monitor: 

Treasury ETFs: (TLT), (TLH), (IEF), (IEI), (SHY), (SGOV), (SCHO), and (BIL). 

Bond ETFs: (AGG), (BND), (VCIT), (MUB), (MBB), (JNK), (LQD), and (HYG). 

Inflation Protection ETFs: (VTIP), (TIP), (SCHP), (STIP), (TIPX), (SPIP), (WIP), (GTIP), (LQDI), and (RINF).