"Troubling Treasury Yields: A Warning for the US Economy?"

The recent jump in 10-year Treasury yields could potentially slow down the robust growth of the US economy, leading to a mild recession next year, according to some forecasters. The economy is expected to grow at a strong 4.5% annual rate in the third quarter, but growth is projected to slow to 0.7% in the current quarter and 1.1% for all of next year. The surge in long-term rates could have a negative impact on the housing market, business investment, exports, and the stock market. Higher mortgage rates, difficulty in obtaining loans, reduced business investment, and a stronger dollar hurting exports are some of the potential consequences.