In the Long Run, Investing Is All About the Economy*

Wednesday provided a perfect demonstration of the three most important issues facing markets: the economy, government spending and the Federal Reserve.

Ten-year Treasury yields posted their third-biggest daily drop since March, when Silicon Valley Bank failed. Investors put equal weight on the three issues—knocking 0.05 percentage point off the yield after each of three events—as their worries eased about the pace of growth, the scale of government bond issuance and how long the Fed will keep rates high.