Treasury bonds rallied in October despite strong economic data, including the fastest third-quarter GDP growth in more than five years. The move caught market watchers off guard after yields surged through August and September.
The U.S. economy expanded at its fastest clip in more than five years during the third quarter, according to the Commerce Department's initial reading on gross domestic product. Yet despite a barrage of robust data, Treasury bonds staged a surprise rally in October.
That shift caught market watchers off guard. Throughout August and September, surging Treasury yields weighed on virtually every corner of the market except technology.
Investors again treated tech as a safe haven, on the view that the artificial-intelligence buildout could weather higher capital costs. As a result, technology was the only one of the S&P 500's 11 sectors to finish September in the green.
Source: MarketWatch (snippet-based)
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