The Federal Reserve's modestly positive report on the economy, issued last week, immediately sent the price of the ten-year Treasury bill downward. If the state of the American economy is strengthening, investors feel more comfortable moving into stocks and other, riskier investments and moving away from the security of Treasury bonds. Selling off the Treasurys, and driving their price down, is a good sign for the economy.
Even better is that the trend has continued. It wasn't just a one-day blip; the price of ten-year Treasury notes has now, as of yesterday, fallen for nine straight days. That's the longest such stretch we've seen since June 2006.
Yields, remember, move in the opposite direction from bond prices, so the yield on the ten-year Treasury was up 8 basis points on Monday, finishing the day at 2.38 percent. That's the highest that figure has been since last October 28.
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