U.S. inflation is set to decline next year, according to activity in the bond market, with the gap between the two-year and 10-year Treasury yields trading at its most negative level in decades. The gap between one-year Treasury inflation-protected securities and similar-dated nominal government notes is at 2.18 percent, indicating that average inflation over the…
Bond Traders Expecting Inflation to Plummet in 2023
Ex-Treasury Secretary Says ‘We’re in New Financial Territory’
Lawrence Summers, the former Secretary of Treasury under the Clinton administration, has warned that home mortgage rates are set to climb even higher. “The U.S. 10-year rate just crossed above 4 percent. Mortgage rates comfortably exceed 7 percent. We are now in new financial territory,” Summers noted in a tweet on Sept. 28. The average contract rate…
Mortgage Rates Jump to 14-Year High as Fed Delivers Jumbo Rate Hike
U.S. mortgage rates spiked to record highs for the fifth straight week following the Federal Reserve’s decision to raise its key interest rate. The average interest rate on a 30-year fixed-rate mortgage was 6.29 percent for the week ended Sept. 22, according to data from the mortgage lender Freddie Mac. This is the highest level…
Gold Falls and Dollar Climbs Following Fed’s Official Remarks
Gold prices declined on April 22 trade as the U.S. dollar and Treasury yields climbed following comments from a Federal Reserve official that a sizable interest rate hike might be incoming. Gold futures were trading at $1,944 an ounce as of 13:57 UTC (9:57 a.m. Eastern time) on April 22, down 0.4 percent from opening….
Yields Will Soon Collapse
Commentary The Federal Reserve is on the cusp of making its biggest policy mistake in modern times and it is seemingly unaware of the damage it is about to cause. Despite appearances of a robust labor market, rising corporate profits, and high asset prices, the underlying economy is rather weak. For many Americans, high inflation…
10-Year US Treasury Rates Yields Hit 2% For First Time Since 2019
U.S. Treasury 10-year yield rates hit above the 2 percent benchmark on Feb. 10, after key inflation data showed larger than expected price pressures, causing the Dow to crater, losing over 500 points. The yield on 10-year Treasury note jumped 12 basis points to about 2.05 percent, the first time since August 2019 when it last…
US Treasury Yields 2020 Drop Makes Way for Slow Grind Back in 2021
NEW YORK—The U.S. Treasuries market took investors on a bumpy ride in 2020, with yields plunging to historic lows in the early part of the year before a partial grind back in the second half. Investors are looking for yields to edge up further as the calendar flips to 2021. Expectations that a vaccine against…
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