Yields on 10-Year Notes Rise on Rumor of Short-Term Debt Ceiling Increase (Bloomberg)
It may not indicate that calmer heads are prevailing, but there are signs that House Republicans and Democrats are inching toward a short-term agreement to increase the U.S. debt ceiling and avoid a default. Not one to miss out on a chance to move on rumor, Mr. Market responded by pushing yields on 10-year notes to their highest levels in two weeks. And should those rumors turn out to be true, with Republicans and Democrats reaching a deal by the Oct. 17 deadline, we may see those yields go up even higher. That would be a welcome sight.