The Bond Market Selloff in Historical Perspective
![photo: The US Treasury building in Washington DC](https://libertystreeteconomics.newyorkfed.org/wp-content/uploads/sites/2/2022/07/LSE_2022_bond-market_fleming_460-1.jpg?w=920)
Treasury yields have risen sharply in recent months. The yield on the most recently issued ten-year note, for example, rose from 1.73 percent on March 4 to 3.48 percent on June 14, reaching its highest level since April 2011. Increasing yields result in realized or mark-to-market losses for fixed-income investors. In this post, we put these losses in historical perspective and investigate whether longer-term yield changes are better explained by expectations of higher short-term rates or by investors demanding greater compensation for holding Treasury securities.