First, the miracle of loaves and fishes: Economic optimism and immense deficits combined to blow up the Treasury market, but mortgage rates have held in the fours.

The 10-year T-note had traded deeply in the twos since Thanksgiving, never above 3.02 percent, and yesterday spiked to 3.36 percent. With mortgages in the high fours, the spread to the 10-year is as narrow as ever, half last summer’s, held only by the Fed’s promise to buy another trillion worth of mortgage-backed securities in the remainder of this year.

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