Industry NewsMarkets & Economy

What happens when Fed pulls the plug

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

In an odd leap, long-term Treasury yields blew up, and Wednesday was the worst single day in nine months. The 10-year Treasury note stopped at 3.88 percent, a level touched for the fifth time since last June, but the violence of this move threatens upward breakout. Meanwhile, mortgages held fairly well, inside the 5.25 percent top that has held since August. The peculiar part: Big sell-offs like this are driven by good economic news, but that's not what we got. February sales of new and existing homes fell (new ones at the lowest pace since stats began in 1963, 303,000 annualized), and unsold inventory rose. Unemployment claims fell to 442,000 last week, but must drop well into the 300s to mark new hiring. The U.S. Bureau of Labor Statistics says unemployment in February rose in 27 states, fell in seven, and was flat in 16. California, at 12.5 percent unemployed, rather more than offsets North Dakota at 4.1 percent and Nebraska and South Dakota at 4.8 percent. Four states ...