Ten-year Treasury yield hits its highest level since 2007 after a hot business survey and a weak auction
The price of borrowing money just reset higher for almost everyone.
The 10-year Treasury yield rose 14.7 basis points on Wednesday to 5.113%, its highest level since July 2007. The move followed S&P Global's flash composite output index for September, which reached 58.4, its highest level since July 2021, as private-sector activity and price pressures accelerated. A $70 billion five-year note auction then cleared at a high yield of 5.033% with a bid-to-cover ratio of 2.21, below the 2.37 average of the past twelve months, a sign of softer demand. Stocks slipped as yields climbed, with the Nasdaq Composite down more than 1% and the S&P 500 off about 0.8%.
Scripture for Reflection
“Therefore do not worry about tomorrow, for tomorrow will worry about itself. Today has enough trouble of its own.”
When the cost of borrowing shifts, we can plan carefully today without carrying tomorrow's worry.
