Lately, commentators have noted that U.S. long-term interest rates are on the rise. As of today, the yield on the 10-year Treasury note is hovering just below its late-January closing peak of 4.89%.
Yet this is not a purely domestic phenomenon. The same also holds true for bond markets around the world.
In each of seven selected international markets -- Europe, Switzerland, United Kingdom, Japan, Canada, Australia, and Hong Kong -- 10-year interest rates are at or near 2007 peaks. In four of them -- Europe, Switzerland, United Kingdom, and Australia -- long-term yields are not far off 12-month highs.
Amid signs that many central banks outside the U.S. are also poised to boost short-term rates in their own countries, some might say that the monetary environment is becoming less supportive for share prices.
So much for excess global liquidity?
Michael Panzner is a 25-year veteran of the global stock, bond, and currency markets and the author of Financial Armageddon: Protecting Your Future from Four Impending Catastrophes and The New Laws of the Stock Market Jungle: An Insider's Guide to Successful Investing in a Changing World.
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Reader Comments (Page 1 of 1)
5-30-2007 @ 7:18PM
Michael said...
This means the inverted yield curve we've experienced in the last few years is going away.
5-31-2007 @ 6:49AM
Michael Panzner said...
In general, yield curves are less inverted than they were, though many haven't quite returned to a "normal" state.