Hot Economy, Inflation Keep Treasury Yields Rallying–Market Talk
(Dow Jones)–Treasury yields rise for a fifth consecutive week as the economy remains hot and inflationary, leading to upward revisions of the Fed’s terminal rate, which some analysts now see reaching 6%. The 10-year yield rises 0.121 percentage point to 3.948% this week, while the two-year gains 0.182 pp to 4.803%, its highest level since July 2007. Next week willbring more activity, labor and inflation data, while Fed officials are expected to reinforce the higher-for-longer narrative. “For those that have been around inflation before it’s known that once the genie is out of the bottle it’s hard to put back in,” AmeriVet’s Gregory Faranello says in a note.
By: Paulo Trevisani (paulo.trevisani@wsj.com; @ptrevisani)