5% Treasuries Are Back For The First Time Since 2007

Summary The 10-year Treasury yield surged above 5% for the first time since 2007, driven by robust PMI data and expectations of further Fed rate hikes. I expect yields to remain above 5% through year-end, with a high probability of at least one more rate hike by December. Short-term Treasury ETFs like SGOV and BIL offer 3.7% yields with minimal price risk, while floating-rate funds such as PAAA provide higher yields but will decline when rates eventually fall. High-yield sectors like REITs are likely to lag as elevated Treasury yields attract capital seeking safer, comparable income streams. ismagilov/iStock via Getty Images Overview The 10-year Treasury yield jumped above 5%, which is a level that we haven't seen since 2007. This happened after stronger-than-expected preliminary September PMI data from S&P Global, which essentially confirms that we'll see additional This article was written by Cain Lee 9.61K Followers Follow Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering high quality dividend stocks and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I created a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SP500 either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.