Stocking Up: U.S. Interest Rates Rise Alongside Investor Confidence
In a sign of investor confidence in an economic recovery, U.S. interest rates grew for the third consecutive day Friday as more people transferred funds to stocks from bonds.
The yield on the 10-year Treasury note, which increases as bond prices fall, rose to 2.81% from 2.77% Thursday and from 2.61% Tuesday, when the rate started its upward march. The yield has also grown from 2.47% at the end of August, although it has fallen from 3.36% at this time last year. Meanwhile, the 30-year Treasury bond yield rose to 3.88% Friday from 3.84% Thursday and from 3.52% at the end of last month.
While growing rates aren't good for those looking to refinance their homes and get new mortgages, they're a welcome sign that equity investments are on the rise. The Dow Jones Industrial Average ($DJI) rose 0.46% to 10,462.77 on Friday, while the Nasdaq ($NDAQ) advanced 0.28% to 2,242.48.