No. of Recommendations: 4
Record high? Rates have returned to more normal levels from RECORD lows The last time the 10-year T-bill was above 5% was in 2006, which was 17 years ago. So, yes, I should say that it's a record high since Shakira sang "Hips Don't Lie" - a looong time ago.
As far as a history lesson, interest rates on the 10-year kept going UP from 2004 through 2006, and yet stocks did fine through that period. Here are the returns.
Year S&P 500 Peak
Return 10-year rate
2004 9% 4.8%
2005 3% 4.6%
2006 14% 5.0%
From the beginning of Jan 2004 through December 2006, interest rates went from 3.8% to 4.8% on the 10-year, and yet the stock market delivered a total return of 28% over that 3-year period.
