Reply #8: Ten-Day Skid Shaves 2.5% From 10-Year Note Price

[Demeter]

http://online.wsj.com/article/SB10001424052748703597204575483293580155822.html?mod=WSJ_myyahoo_module

As investors have piled into Treasury debt in recent months, skeptics have warned they were risking big losses if interest rates should jump higher suddenly.

In 10 short days, bond enthusiasts have gotten a nasty taste of what such a jump could feel like, with 10-year Treasury notes losing about 2.5% of their value, according to Tom di Galoma, head of fixed-income rates trading at Guggenheim Partners.

That may not seem like much—but at these low yield levels, it's essentially the equivalent of a holder's entire income for the year. It's also in contrast to a 4.5% gain in the Dow Jones Industrial Average in the same time frame.

The yield on the 10-year Treasury, which moves up as prices move down, rose to 2.795% on Friday, its highest level in more than a month. Treasurys have been coming off a frothy few months, in part because investors have modestly tempered their worries about a double-dip recession....