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Hey y’all, There’s a new concern on Wall Street about bond rates, as the yield on a 10-year treasury has climbed to nearly 5%. Take a look at this chart: 
A 1+% spike in about four months is definitely a cause for concern, especially when there’s uncertainty about why this rise is happening at all. Some point to the policies of the new Trump Administration… Others finger lingering inflation concerns… Still others say it’s not even a bad sign — that it could be evidence of monetary policy returning to normal… But whatever the cause, it’s certainly causing dyspepsia with investors who are uncertain where to put their money right now. The 10-year Treasury Yield has averaged 2.91% over the past two decades, making this new climb an outlier for most people’s memories. But I read an interesting article from Yahoo! Finance that points to a simpler culprit: uncertainty.
“The current rates story isn’t really about the level… it’s about uncertainty. The rise in rates feels more like a way to define all the angst brewing among investors in 2025. And for a generation of investors that have had few opportunities to ponder what place a roughly 5% fixed income yield should play in their portfolio, the uncertainty of what keeps driving yields higher and when it ends appears to be the early story of the market in 2025.”
There’s a lot of truth there. The fact is that the market fears uncertainty more than anything else. It always has. It always will. Average investors don’t care so much about Treasury yields per se, but they see scary headlines about Treasury yields that they don’t fully understand, and they get spooked. Trading and investing is always about riding the emotional waves of others. And right now, the “moon” that is pulling the tides in and out seems to be the Treasury yield. We’ll see how long that lasts. But for now, it shouldn’t really affect your trading strategies, other than to expect more uncertainty and volatility ahead. To your prosperity, Stephen Ground Editor-in-Chief, ProsperityPub | 
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