Rates are jumping as jobs report showed hidden signs of inflation

This article is about the jobs report and how most interest rate benchmarks increased to new high-levels. Both the 2-year and 10-year T-Note hit new highs of 1.52% and 2.39%. The fed believes that the economy is facing real wage pressure as the average annual wage number has raised by 2.9%. Meanwhile, the Fed's benchmark inflation rate is 2%. So as we can see, wages are growing at a faster rate than we would like. Editor, Larry McDonald said, "For the first time in potentially a decade we're actually looking at real wage pressure. The slack in the labor force is finally dissipating" (McDonald). This higher-than-average wage growth has caused the interest rates on these Treasury Notes to slightly increase. This is good news for bond investors and savers, as people are going to be able to have higher returns on savings. However, the labor market could be affected as supply of labor could decrease.

https://www.cnbc.com/2017/10/06/rates-are-jumping-as-jobs-report-showed-hidden-signs-of-inflation.html