Treasury yields continue to rise rapidly.

Little has changed in terms of the overall trend in the fixed income market. US Treasury yields have continued to rise and have done so with notable speed. Rising yields have weakened several segments of the fixed income market like investment-grade bonds and Treasuries.   

• The US Treasury 10YR Yield Index TNX reached 1.425% on its default chart almost exactly where it sat one year ago. At the beginning of the month the index at 1.125%, meaning that it has gained about 30 basis points over the last three weeks, which is roughly equal to what it gained over the entire fourth quarter of 2020.
• Further out on the yield curve, the 30-year yield index TYX printed three Xs on its default chart in Wednesday’s trading, reaching 2.275%. TYX is now up about 40 bps for the month.
• The five-year yield index FVX has also risen, but not as rapidly as the either the 10- or 30-year. FVX is up about 15 basis points in February. As a result, the yield curve has steepened.
• The iShares US Core Bond ETF AGG broke a spread triple bottom in last week’s trading and has continued lower since then, printing six additional Os on its default chart. AGG has a weak 1.54 fund score and a negative -3.15 score direction.
• Convertible and high yield bonds continue to lead the fixed income rankings within the Asset Class Group Scores.