Treasury Yields Keep Rising on Good News
\n\nThe bond vigilantes had a busy Wednesday, but maybe they aren’t vigilantes at all.
\n\nThe yield on the 10-year Treasury climbed to 5.108 percent, its highest level since 2007. If this was a warning about Washington’s debt, its timing was peculiar. The sell-off followed a report that American businesses are growing much faster than economists expected. There was no news about the federal deficit or debt.
\n\nS&P Global’s preliminary September survey showed activity across manufacturing and services expanding at the fastest pace in more than five years. Its composite index rose to 58.4 from 56.0 in August. The manufacturing index jumped to 57.0 from 53.9, well above expectations of 53.6, while the services index reached 58.7. New orders and hiring strengthened. S&P Global said the September readings were consistent with annualized growth of around five percent for the month and four percent for the third quarter. The Atlanta Fed’s GDPNow estimate for the quarter stood at 5.1 percent before today’s report.
\n\n“US business continues to boom, with output growing at the fastest rate for over five years in September,” S&P Global economists Chris Williamson said.
\n\nThe bond market’s response was immediate. As yields…
Original source: https://www.breitbart.com/economy/
