The morning of Wednesday, September 23rd began in an unremarkable fashion until a survey on business activity jolted financial markets, pointing to resilient growth and ongoing inflationary pressures. Selling in the bond market was then compounded by three key developments…
1. Escalating rhetoric from an Iranian official at the U.N.
2. Hawkish comments from a Federal Reserve governor.
3. Weak demand at an auction of government bonds.
This created a “perfect storm” that drove the 10-year Treasury yield up by the most in a single session since April 2025. The 10-year closed at 5.113%, levels unseen since 2007, and has since climbed to 5.193%.
Because the economic momentum persists, yields continue to rise as investors bet the Fed will need to raise rates higher than previously anticipated to curb inflation. Additionally, as total national debt has doubled over the last decade, government bonds carry higher perceived risk, leading traders to demand higher yields.
Let me leave you with this..
The question becomes why is this important to you, your family, and your business? I’m glad you asked.
The 10-year U.S. Treasury yield serves as the global benchmark for long-term interest rates and borrowing costs worldwide. It directly influences…
1 – 30-year fixed mortgage rates
2 – Corporate borrowing costs for expansion
3 – Consumer credit and auto loan rates
But here’s the really fantastic news. It doesn’t look like there’s an end to rising interest rates in sight.
Since rates are likely to remain elevated, consider the following action items for your financial planning…
1. If you hold variable-rate loans or mortgages, consider refinancing to a fixed-rate instrument to lock in costs. You’ll probably save money in the long-run.
2. Account for higher borrowing costs when planning acquisitions or expansion projects requiring debt financing. This may put the kibosh on projects you’ve been planning.
3. Consider using excess cash to pay down high-interest obligations, such as credit card debt or auto loans.
I know that I sound like a broken record, but this economy could easily turn in a heartbeat. Now is the time to manage your businesses conservatively.
If you have questions, you know my number.
And as always, if you’re having problems with your accounting and tax work, don’t hesitate to contact us. We’d love to provide an Accounting Solution.
We’re all going to get through this. Let’s get through it together..
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, Accounting and Tax Work, Tax Planning, or Tax Representation, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
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