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Treasuries spike as curve steepens

The 10-year Treasury yield found some life this week, jumping to a seven-year high of 3.22% as of Friday afternoon after starting the week at 3.06%. The yield broke above its previous 2018 high of 3.11% Wednesday after 98 days below that mark set in May. The increase was enough to pull back equity markets from prior weeks' gains; the S&P 500 index fell 1.1% during the week through midday Oct. 5.

The increase in rates was accompanied by a steepening of the yield curve as the spread between the 2-year and 10-year Treasury rose to 33 basis points. The rise bucks a downward trend that began in February's brief market rout when the spread between the two rose to 78 basis points.