Market sell-off brings 10-year American treasury yield back in focus

The 10-year yield has been on an upward move for a while now, but it wasn't expected to reach the level of 2.85%, anytime soon

Global market sell-off was triggered by a rise in bond yields in the United States. Wall Street's Dow Jones and S&P 500 benchmarks had slumped over four per cent each on Monday, their biggest drops since August 2011. The author explains why the bond yields are rising and it's likely impact on financial markets.

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Between December 2017-end and February 5, 2018, the 10-year American Treasury Bond yield rose by 45 basis points to 2.85%. Treasury bonds are issued by the US government to finance its fiscal deficit, which is the difference between what a government earns and spends.