Interest rates will continue to rise, but don’t blame it all on inflation, economists say

Interest rates will continue to rise, but don’t blame it all on inflation, economists say

Interest rates are expected to continue their upward march, but for now they're not expected to get high enough to harpoon the stock market.Treasury yields have been rising quickly in the last week, and the benchmark 10-year yield has been on a tear - reaching 1.33% in the early morning hours Wednesday before retreating below 1.30%. Yields move opposite price, and the 10-year has risen from about 1.15% just a week ago to levels that are close to where they were when the pandemic started hitting the economy last February.The 10-year is key to the economy, since it impacts mortgages and other consumer and business loans.Bond strategists say the move in yields has opened the door for a higher move, and a next logical target for the 10-year is 1.5%. The yield is unlikely to go much higher in the near term unless inflation picks up or there is a signal from the Fed that it is ready to tighten policy, which is highly improbable."I think it's reflective of economic conditions, which is why other financial assets, like equities, aren't taking it too badly," said Jim Caron, head of global macro strategy at Morgan Stanley Investment Management. "The thing is