Bond selloff a wild card that could delay Fed rate hike

The sharp bond market selloff is starting to pinch American consumers and companies, causing a mild economic tightening that, if sustained, could raise alarms at the Federal Reserve and even delay a plan to hike interest rates in coming months. U.S. mortgage rates have reached their highest level in a year-and-a-half, auto loans are getting a bit more expensive, and corporations across the board have seen their borrowing costs jump as U.S. and European debt retrenched in recent weeks. With benchmark U.S. government debt having jumped from 2.13 percent to as high as 2.49 percent so far this month, Fed officials headed into a policy meeting next week will be asking how long the selloff could last -- and how much it could slow the economic rebound from a winter slump.

Bond selloff a wild card that could delay Fed rate hike source: http://finance.yahoo.com/news/bond-selloff-wild-card-could-051130402.html