Reply #3: 'Conundrum' winds down as US bond yields rise

[ozymandius]

WASHINGTON (AFP) - The "conundrum" of the bond market underscored by former Fed chief
Alan Greenspan appears to be ending, as long-term yields are finally moving higher in response to a series of rate hikes by the US central bank.

The 10-year Treasury bond moved as high as 4.979 percent Friday, up sharply from 4.39 percent at the start of the year, and at its highest level since mid-2002.

For the 30-year bond, which was reintroduced by the Treasury this year, the yield topped 5.0 percent for the first time since December 2004, closing Friday at 5.038 percent.

The rise in bond yields affects other interest rates, notably mortgages, and is likely to cool economic growth.

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