What a 3% Yield on 10-Year Means for Stocks

Current San Francisco Fed President John Williams, who will soon transition to the much more powerful New York Fed, sent a jolt through the bond market. In an interview in Madrid, he struck a hawkish tone, suggesting that the Fed may need to hike more aggressively due to tight levels of slack in the economy. This has sent the 10-year Treasury yield hurdling toward 3% again. Today we won't talk about Williams' argument specifically, since it isn't really new. He's been saying the same basic message for months. Rather, let's explore what a 3% 10-year means to markets and to the economy, what it would mean if it kept going higher.

Are rising long-term rates a problem for the economy? Or for stocks?...1213 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.