Chart of the Day - Friday, March 12th, 2021

Today’s Chart of the Day was shared on Twitter by Matt Harris (@MattHarrisCMT). It's a chart of the US 10-year Treasury yield over the past six decades. The 10-year yield jumped over 1.60% today, closing at the highest level in more than a year. It's hard to accurately measure the rate of change on yields, due to the fact that we're starting from such a low base, but there's no doubt that rates have significant momentum behind them right now. This rapid rise has sparked a lot of discussion over what it means in terms of asset allocation. In a comment to The Chart Report, Matt Said, "Rates are rising for the right reasons – improving outlook for economic growth and earnings. Rates are still far from a level that hinders economic growth but the speed of rates rising and extrapolating short-term trends may increase volatility, the environment will continue to be positive for risk assets and equities. Look to lighten up on bonds when yields drop, add to stocks when rate fears cause a sell-off."