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A new normal appears to be beginning to take shape in the bond market.The 10-year Treasury yield BX:TMUBMUSD10Y traded at 4.25% as of 2 p.m. Eastern time on Wednesday, remaining at one of its highest levels since 2008 after a steep three-year run-up. Meanwhile, the real rate — based on the yield on 10-year Treasury inflation-protected securities, or TIPS — was at 1.917%, extending its rise out of below-zero levels that had prevailed during the early years of the pandemic, according to Tradeweb. And this may be just the start of the higher-for-longer theme that’s been playing out across U.S. rates.
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