September 20, 2023

Interest rates have swung wildly over the past two years in response to inflation, economic concerns, and market volatility. After falling as low as 3.3% earlier this year, the 10-year U.S. Treasury is now yielding around 4.2%, back to where it was roughly a year ago. However, while today’s long-term yields look similar to last year’s on paper, they are quite different from an economic and market perspective. What are interest rates telling us today and how does this impact long-term investors?