Bad news: Rates Spike To 7 Year Highs. Good news: Economy Strong
Major bond market selloff today. Below are some important reads on both sides. Bad news: Rates rise when bond prices drop in a selloff, and 30-yr mortgage rates now moving into 5% range. Good news: bonds are selling because the economy is improving. Most recent rate projections from the MBA called for 4.7% rate range by end of year, and we’re now almost .25% above that. They revise monthly, so we’ll see in a couple weeks if end-of-year projections are revised.
Rates, Bond Market, Economy
- Rates Surge To 7 Year Highs(mortgagenewsdaily.com)
- Rates Spike Today After Worst Bond Selloff In Nearly 2 Years(housingnewsletters.com)
- Treasuries Selloff Pushes 10-year Yield Highest Since 2011 (bloomberg.com)
- Bill Gross Blames Hedging Costs As Bond Rout Deepens(bloomberg.com)
- One upside of bond selloff: economy doing better(wsj.com)
- Rates spike on ebullient economic data(ft.com)