US yields move to multi year highs as the wall of worry is growing.

The useful part

The question for traders is whether yields can stay at these levels as the market weighs strong growth against the risk of more inflation. That follows an August employment report that added 162,000 jobs, well above the 56,000 expected in a Reuters survey. Gasoline rose 3.9% in August, while prices excluding food and energy rose 0.3% on the month.

How it works

• Higher fuel costs can work their way into transportation, farming, food processing and delivery costs.
• How much businesses pass through to customers will help determine whether the energy sho...
• Richmond Fed President Tom Barkin said yesterday that inflation risks outweigh employment risks and pointed to the rebound in job gains and continued consumer spending in explaining last week's rate hike.
• In other words, policymakers are seeing price pressure at a time when the economy has remained firm enough to handle tighter policy.

Details worth keeping

US Treasury yields are trading at highs across the curve. The 10-year yield is above 5.09%, and the 30-year is near 5.39%. At the time of the yield snapshot: 2-year: 4.8952%.