Long-term rates are rising quickly, with the 10-year T-note to 4.6 percent from sub-4.5 percent one week ago, and mortgages to 6.25 percent. Both are headed higher.
The immediate cause of retreat: February payrolls did just fine in today’s dawn release. The economy produced 97,000 new jobs, and January and December were revised up another 55,000; unemployment fell a tick to 4.5 percent, and wages are up 4.1 percent year-over-year. No way the Fed’s going to ease on numbers like that, not with inflation still in the hazard zone.