Who's Afraid of 3% U.S. Yields? Not This Economy: Chart

(Bloomberg) -- Even though the yield on 10-year Treasuries has topped 3 percent, there’s considerable room to run before rising rates materially hurt broader economic prospects, according to Bloomberg Economics. While some economists are concerned that higher rates will stifle growth and send the country into recession, evolving fundamentals change the calculus. Interest rates have not kept up with the acceleration in growth and that gap is a fundamental reason why the current economic cycle is the second-longest in the modern era.

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