US stocks mixed as Treasury yields hit multiyear highs - T-bill ladders gain appeal

  • US stocks ended mixed as Treasury yields rose and long-term borrowing costs reached multiyear highs.
  • The 30-year yield reached 5.594%, while the 10-year yield hit another 19-year high.
  • Three-month T-bills traded around 4.2%, and 12-month yields exceeded 4.5%.

US stocks finished mixed Tuesday as Treasury yields climbed, with the 10-year yield reaching another 19-year high and the 30-year yield rising to 5.594%, its highest level since 2002. A previous market report put the 30-year yield at 5.5977%, reflecting a small discrepancy between reports. Elevated oil prices, inflation concerns and fiscal-deficit worries added pressure to bonds and equities. Higher short-term rates also increased the appeal of Treasury-bill ladders, which use staggered maturities and reinvestment to provide scheduled cash flows and distribute interest-rate risk. Three-month bills traded around 4.2%, while 12-month yields exceeded 4.5%. New York Fed President Williams said another rate hike could be necessary this year, while traders repositioned through heavy fixed-income ETF options activity, including in BlackRock's iShares 20+ Year Treasury Bond ETF (TLT).

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