More than two weeks ago, in an apparently sustained and explosive rise, the 10-year T-note traded at 4.4 percent, and low-fee mortgages were 6 percent. Today, Treasurys reached 4.15 percent, and mortgages 5.75 percent. There is no consensus explanation for the decline. Yes, these are the quietest weeks of the year in the bond market (all the heavies are on Hampton beaches, kicking sand at lightweights), and weird stuff happens when nobody is home. Nothing seems to have changed at the onward, upward Fed. Chicago Fed prez Moskow on Thursday delivered merciless remarks: "...Continue to reduce accommodation...core inflation higher..." and said 5 percent unemployment is "about as low as it can go on a sustained basis." One predominant bond-market theory: high energy prices are more likely ...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.