Ruh-Roh. Ride's getting rough.
Longer-term Treasury yields spiked late this week as the second wave of inflation took on more substance with back-to-back inflation reports: CPI inflation soared by 3.8% year-over-year, driven by core services, gasoline, electricity, and food; and the measure that tracks inflation in prices companies pay each other, the Producer Price Index soared by 6.0% year-over-year as the services PPI blew out. Inflation in services is the biggie. Services account for over 60% of the economy, and inflation took off in services.
The 30-year Treasury bond sold at the auction on Wednesday at a yield of 5.046%. In the secondary market, the 30-year bond has traded over 5% from time to time in recent years, but this was the first time since 2007 that the 30-year bond actually sold at auction with a yield above 5%....
You can read "inflation" as WILD OVERSPENDING BY THE FEDERAL GOVERNMENT, too.
Trust me--that's what is behind this.
Notice that we did not mention Wars Which Cause Energy Prices to Go To The Moon??
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