Furthermore, the U.S. services sector grew last month at its fastest pace based on data released by the Institute for Supply Management. The ISM non-manufacturing index ticked up to 61.6, which represents its highest level since 2008, beating out a poll of economists expecting the index to show 58 for the month of September.
According to analysts, all this strength in the labor market and the economy in general is beginning to prop up government debt yields, which doesn’t portend to any concerns.
“The level of the rates does not concern us,” said Steve Chiavarone, portfolio manager at Federated Investors. “That said, moving more than 10 basis points in two days is a different story. Pace matters and it bares watching.”
“When you move at this pace in a short amount of time, it’s natural for the market to take a breather,” Chiavarone said.
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