Money: Bond-Market Mayhem

Bond traders can be a perverse group. A whiff of economic recovery had Wall Street pushing bond yields skyward (and prices downward) even before last week's report that GDP grew at a surprisingly strong annual rate of 2.4% in the second quarter. Now even stronger growth is widely expected the rest of this year. Since the middle of June, the yield on the benchmark 10-year Treasury bond has surged to nearly 4.5% from 3.1%--a staggering reversal that is shutting down mortgage refinancings and forcing up business borrowing costs. If the trend persists much longer, these higher rates could hold back the...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!