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The yield on the benchmark U.S. 10-year Treasury note jumped to a 7-year high on Friday following the release of jobs data which showed unemployment stateside falling to its lowest levels in 49 years.
The move came a day after the yield on the 10-year Treasury breached the 3.2 percent mark, with one market observer warning that this could just be the beginning.
“It might be that we are in the early stages of a persistent rise in rates,” Jim Grant, editor and founder of Grant’s Interest Rate Observer, told CNBC’s “Closing Bell” last week.
Jeffrey Gundlach, chief executive of Doubleline Capital who is often referred to as Wall Street’s “Bond King,” said in September that the 30-year bond rate posting two closes above 3.25 percent would be a “game changer” and send yields into a new paradigm.
The yield on the U.S. 30-year Treasury was at 3.405 percent on Friday.