The 10-year Treasury yield currently sits slightly above levels established following the injection of $4 trillion in federal stimulus into the economy. This yield threshold matches data points last recorded when the United States experienced annual inflation rates surpassing 6%.
Market yields for the 10-year note have reached these benchmarks despite the previous combination of multi-trillion dollar fiscal support and significant price volatility. Current interest rate levels mirror the economic environment seen during that period of 6% inflation and massive liquidity expansion.