by John Rubino, Dollar Collapse:
This morning’s jobs report was stronger than expected, which – combined with Amazon’s dramatic increase in its minimum wage to $15/hr — implies rising wages going forward.
The bond market reacted as you’d expect to the prospect of higher wage inflation, with the yield on 10-year Treasuries hitting its highest level in five years.
This is good news for long-suffering savers and retirees who can finally generate a decent return on their investments. But it’s potentially disastrous for the broader financial system, which is now so over-leveraged that interest rates returning to historically-normal levels pose a mortal threat.