On Friday — Jerome Powell’s last official day as chairman of the Federal Reserve — jittery bond market investors sent U.S. Treasury yields soaring to their highest levels since early 2025.
The 10-year Treasury, which serves as a benchmark for 30-year mortgage rates, touched 4.607% before closing at 4.596%. The 2-year yield reached as high as 4.094% before settling at 4.075%, while the 30-year Treasury yield closed at 5.12% after hitting 5.132%.
Earlier in the week, the Bureau of Labor Statistics reported the beefiest inflation print since May 2023, with the consumer price index (CPI) reaching 3.8% on an annual basis in April.
Fannie Mae’s latest economic forecast, released May 12, predicts headline CPI will reach 4.5% during the second quar...