The rate-indicative 10-year Treasury yield rose to a notably higher level, near 4.38%, Monday morning after the release of a particularly strong manufacturing index report.The benchmark yield, as tracked by Yahoo! Finance, had been oscillating somewhat but generally trading in a lower range. It had gained a little more upward momentum in the past week in reaction to indicators suggesting that inflationary pressures may be more of a concern than economic weakness in the wake of recent hurricanes. "It appears that the hurricanes had little impact in dampening orders or production aside from the energy sector," said RBS Greenwich Capital chief economist Stephen Stanley in his Monday commentary on the ISM Manufacturing Index. "On the other hand, there was clearly a discernible effect on the price side, as the prices-paid gauge soared to 78.0, while the supplier deliveries measure advanced to 59.3 (signaling longer delays in receiving shipments of inputs), the highest reading in nearly a year in both cases."

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