Solid US economy contributes to higher 10-year Treasury yields
Inverted yield curve less likely as long-term growth and inflation expectations rise
The strength of the US economy is pushing markets to forecast higher inflation and growth over the long term, a trend reflected in rising 10-year Treasury yields.
On October 5, the US Bureau of Labor Statistics indicated the unemployment rate had decreased to 3.7% in September, the lowest level since 1969. The BLS added wage growth expanded by 2.8% over the year, above the 2% in core inflation recorded from May-August. In 2018 so far, the unemployment rate has declined by 0.5 percentage points
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