yields retreated from their highs of the day in afternoon trading the 10year broke above 175 earlier in the session marking its highest level since jan 24 2020 when it topped out at 1762 this is also the first time the 30year has traded above 25 since august 2019 the yield on the benchmark 10year treasury note was up 8 basis points to 1719 the yield on the 30year treasury bond climbed 3 basis points to 2472 yields move inversely to prices 1 basis point equals 001 the 10year us treasury yield jumped above 17 on thursday its highest level in more than a year despite reassurance from the federal reserve that it had no plans to hike interest rates anytime soon nor taper its bondbuying program guy lebas chief fixed income strategist at janney montgomery scott described the move as a belated overreaction to the feds projections and jerome powells statements on wednesday the realization in the fixed income market really is around commitment that fed policy is going to be easy for some time and allow for yields to rise thats not a new theme said lebas after the feds twoday policy meeting concluded wednesday the central bank said it sees stronger economic growth than previously estimated forecasting gross domestic product to rise to 65 in 2021 this is up from the 42 gdp increase forecast in december the fed also expects core inflation to hit 22 this year but has a longrun expectation of it sticking around 2 the central bank also indicated that it didnt plan to hike interest rates through 2023 and that it would continue its program of buying at least 120 billion of bonds a month these projections reinforced the idea that the fed is willing to let the economy run hot for a period of time to allow the us to recover from the covid pandemic bond investors fear this means the central bank will let inflation increase more than normal eroding the value in bonds some strategists have pointed to overseas developments as a reason for thursdays spike in yields the bank of japan is expected to widen a band around its longterm rate target according to the nikkei newspaper signaling a step toward tighter policy i think japan had a lot to do with it because if you pull up a tick chart  the jump from where we were 166ish to 173 or 4 happened in a really short period of time right as the japan information was coming out said kathy jones the chief fixed income strategist for the schwab center for financial research i think that was the catalyst and i suspect it might have caught some people positioned the wrong way and then it is an uptrend in yields so other traders are going to jump on the bandwagon when you get a breakout like that there has been some concerns that the recent rise in bond yields and inflation expectations could mean a repeat of the 2013 taper tantrum this was when treasury yields spiked suddenly because of market panic after the fed said it planned to start tapering its quantitative easing program however willem sels chief investment officer for private banking and wealth management at hsbc said the feds message of a gradual normalization of policy meant this was a very different situation than 2013 where bond tapering caught the market by surprise leading the real yield to spike quickly and significantly and causing equities gold and risk assets to sell off initial jobless claims for the prior week came in a worsethanexpected 770000 on thursday but the philly feds manufacturing outlook survey was better than expected auctions were held thursday for 40 billion of fourweek bills 40 billion of eightweek bills and 13 billion of 9year 10month treasury inflationprotected securities