No, the Treasury Market Didn't Just Discover the National Debt
Recent increases in Treasury yields have sparked discussions about the state of the economy. The Washington Post editorial board highlighted that long-term U.S. Treasury bond yields reached their highest levels in nearly 19 years. However, the article argues that this rise does not necessarily indicate a discovery of the national debt's implications.
- ▪Yields for long-term U.S. Treasury bonds reached almost 5.2 percent, the highest in nearly 19 years.
- ▪The Washington Post editorial board views this as a warning about the economy's instability.
- ▪The article contends that rising yields do not reflect a newfound awareness of the national debt.
Opening excerpt (first ~120 words) tap to expand
The markets are never a snapshot of the present. They’re a look ahead. It’s worth keeping in mind as commentators try to make sense of rising Treasury yields. Take the Washington Post editorial board’s analysis of the recent jump. They write that, “Yields for long-term U.S. Treasury bonds shot up to almost 5.2 percent on Tuesday, reaching their highest levels in almost 19 years. That’s a warning sign about the wobbly state of the economy and yet another reminder of the unsustainability of federal spending.” No, not really. Read Full Article »
Excerpt limited to ~120 words for fair-use compliance. The full article is at RealClear Markets.
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