NEW YORK—The U.S. benchmark 10-year Treasury yield on Monday hit 3 percent for the first time since December 2018, a psychological milestone that could have major implications for other financial markets.
The 10-year yield is an important barometer for mortgage rates and other financial instruments. It has surged the last two months as the bond market prepared for the Federal Reserve to start reducing its balance sheet, which ballooned to nearly $9 trillion, as the central bank bought bonds during the pandemic. The process of unwinding all those purchases is called “quantitative tightening.”
