Volatile US treasury yield points to transition from recession to recovery

The volatility recently seen in the US treasury yields and equity markets is often a characteristic of the economy transitioning into a new phase of the business cycle, in this case from recession to recovery, according to Jeroen Blokland, Portfolio Manager for the Robeco Multi-Asset funds, Robeco ONE and Robeco Pension Return Portfolio. 

The US 10-year treasury yield is currently seen at 0.87%, having declined by 10 basis points on Thursday. The yield rose sharply from 0.72% to almost 1% in the five trading days to Nov. 11 on optimism that the US' trade strategy under Democrat Joe Biden's leadership would be less aggressive and hopes for coronavirus vaccine. The US drugmaker Pfizer announced Monday that its vaccine candidate has achieved over 90% effectiveness.