by Wolf Richter, Wolf Street:
All bull markets come to an end, even the 35-year Great Bond Bull Market.
The US Treasury 2-year yield crept up 3 basis points during the week, to 2.81% at the close on Friday, the highest since June 2008. In a month or two, as the fourth rate hike for 2018 and more rate hikes next year are getting further baked in, the 2-year yield will cross the 3% mark! Just two years ago, many soothsayers on Wall Street said this would never happen again – that the Fed, in fact, could never raise rates to this point. But here we are.