Economic forecasts issued by the government continue to improve, and yet it's consumer concern over the economy that's driven President Bush's approval rating back to pre-war levels.
Even so, business productivity soared in the second quarter to its best showing since last year. At the same time, new claims for jobless benefits dropped have to a six-month low. And, orders to U.S. factories lodged their biggest gain in three months.
The equities markets like that kind of news. But it's been a different story in the bond market. There, signs of a rekindled economy have put new pressure on investors and borrowers alike.
That sort of volatility means increased costs for borrowing money and a potential short-circuit in the consumer-driven economic recovery.
It's also bad news for capital-short industries like agriculture. In many cases, farmers have assumed floating interest rates on loans, which means the upward pressure on yields will make that form of short-term borrowing more expensive.
Down the road, there also will be increased worries about inflation and the possibility the Federal Reserve will boost interest rates. The short-term interest rate futures market already considers that a foregone conclusion for sometime in 2004.