The 10-year Treasury yield hit its highest level since 2007. What it means for stocks

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Some on Wall Street expect the 10-year yield can climb further from here.

The bond market could give stocks another headache. The U.S. 10-year Treasury yield climbed to its highest level since 2007 this week. Meanwhile, the 30-year Treasury yield reached its highest point since 2011. Both have been rising after surprisingly hawkish minutes from the Federal Reserve's July meeting, worrying investors the central bank could keep rates higher longer than previously anticipated. This comes during a tough time for the stock market.

Meanwhile, Strategas' Chris Verrone said Tuesday he's looking at the 5%-5.25% range as the next key level to watch for the benchmark yield. He also noted the recent breakout is reminiscent of one seen in 1987. "Yields broke out on August 27th, 1987, and rallied 133bps over the next 33 trading days from 8.90% to 10.23%," he said. "In today's terms, that would roughly be the % equivalent of 10s trading to about 4.90% by early-October.

 

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