Ten Yield Note Yield Above 5%,Highest Since 2002

Check out the yield curve now.No inversion now.The Ten Year Note is now yielding over 5%.Here's what The Telegraph reports:

Analysts said the spike in yields is chiefly caused by an exodus of Asian investors, who hold a huge chunk of the US national debt.

"We've started seeing a lot of money being repatriated into the Japanese equities market," said Matthew Smith, a manager at Smith Affiliated Capital. J-apanese holdings of foreign bonds has fallen by $70bn so far this year, according to data from Japan's fin-ance ministry.

Strong US retail sales in March and growing fears that high energy and commodity costs will soon start feeding into core inflation has also weighed on the bond markets.

Michael Taylor, senior economist at Lombard Street Research, said this year's sudden rise in 10-year yields risked tipping the US economy into a downturn.

"This could be the catalyst for a sharp correction in property prices and wean consumers off their credit binge," he said.

Right now the fed funds futures are pricing in two more increases.We here at Newsalert think it will be more than two.We see at least 5.50% by the end of the year,with mortgage rates higher.