Shazam! That was the magical incantation which Billy Batson used to turn into Captain Marvel in the old comic books.
3%! That’s the yield on the ten-year Treasury note that makes fully grown investors almost faint. It’s the opposite of Shazam, capable of turning the Incredible Hulk back into David Banner or Superman into Clark Kent.
On Wednesday, the yield on the ten year closed above 3% (it has slipped back under since) for the first time since the days dinosaurs roamed the earth. Oh, wait, it was just 4 1/2 years ago, and after that, yields tumbled again, hitting their all-time lows of 1.36% in July 2016.
Investors are not taking the news well. The Dow Jones Industrial Average lost 700 points before rallying a bit and the S&P 500 lost 2.7%. Serious-sounding pundits proclaimed the end of the 35-year bull market in bonds is at hand.
So, are there reasons to worry?