Bond market pressure points to higher borrowing costs

Bond markets have pushed interest rates higher in recent weeks as investors weighed persistent inflation and the Federal Reserve's next move on benchmark rates.

The Federal Open Market Committee kept its benchmark rate unchanged at its latest meeting, but three voting members favored a quarter-point increase. The Fed said economic activity was expanding at a solid pace and unemployment was low, while inflation remained above its 2% goal.

The personal consumption expenditures price index, the Fed's preferred inflation gauge, was 3.7% higher than a year earlier. Higher market rates can feed into borrowing costs for households, farms and businesses.

Read the full story at DTN Progressive Farmer.