Q&A: Why rising interest rates are shaking financial markets
NEW YORK (AP) – Well, that escalated quickly.
After rising steadily for much of the past year, Treasury yields got a shot of adrenaline this week, and the yield on the 10-year Treasury leaped to its highest level in seven years. It temporarily crossed above 3.20 percent during trading on Thursday, up from 3.05 percent late Tuesday.
U.S. Treasurys often act as the benchmark against which other investments are measured, and the surge in yields reverberated in markets around the world, prompting selling in both stocks and bonds. The S&P; 500 had its worst day in three months Thursday, for example.
Here’s a look at what’s going on: