10 year yield futures persistent strength in 10 year yield

Persistent strength in 10 year yield futures signals that long-term borrowing costs will likely stay high. This could keep pressure on equity sectors reliant on leverage, including REITs, private equity-backed firms, and capital-intensive industrials. The yield on the 2-year Treasury note fell to 3.56%. The 10-year yield was down to 4.1%. Yields fell sharply in the wake of the report as bond prices rose. Bank of America reinstated coverage of Digital Realty Trust with a buy rating on Monday, naming the real estate investment trust its 2025 top data center pick. As 10 year yield futures hover around 4.18%, analysts are recalculating fair value models for S&P 500 components. Higher discount rates from yield forecasts typically trim DCF-based valuations, bringing growth-stock prices under scrutiny.