Following a pretty sizable move in interest rates, the yield on the 10-Year US Treasury (2.22%) is now above its 200-day moving average for the first time since last July. Granted, 2.22% is still low by historical standards, but it still doesn't negate the fact that the US government has seen its borrowing costs increase by 12% in a week. When your borrowing amounts are measured in trillions, every little basis point counts. For every trillion the government borrows, a one basis point increase in interest rates translates to an extra $100,000,000 in annual borrowing costs.
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