The sustained run-up in U.S. Treasury yields has been a defining feature of the residential mortgage market since the start of the Iran war in late February.
Now in late September, yields on longer-dated government debt have maintained their upward momentum well over 5%. That’s not a good sign — or maybe it is. Maybe it’s both.
“Economic growth is strong and the labor market is solid,” said Federal Reserve Governor Michael Barr on Wednesday, echoing views shared by fellow Fed policymakers and financial analysts across the economic spectrum.
Yields on 10-year Treasurys to which mortgage rates are benchmarked swung 20 basis points higher over the past week to reach their highest levels in almost two decades. Yields on 30-year government debt ...