What does 5% look like on a chart? Treasury prices have plummeted, sending benchmark 10-year yields above 5% for the first time in 16 years. Governments issue bonds when they want to borrow money. Bonds issued by the US government are called Treasurys. If you buy a bond, you're giving them a loan. The bond itself functions as an IOU note, with the holder entitled to regular interest payments and repayment of the loan in full at a later date.

Over the past 18 months, FOMC has raised benchmark interest rates by more than 500 basis points – the steepest increase since the 1980s. In recent months, the central bank has signaled it plans to keep rates high well into 2024 until its 2% inflation target. Remember, yields move in the opposite direction to bond prices. When borrowing costs go up, bond prices fall because their fixed returns become less attractive to investors.

QQQ YTD = +31%
YTD low = -2%
YTD high = +46%
QQQ 20yr average ROI = 10.6%
QQQ 10yr average ROI = 20.1%
Beyond Technical Analysis

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