All articles tagged with #bond market
The average 30-year fixed mortgage fell to 5.99%, tying the lowest level since 2022 and helping refinancing applications surge about 130% year over year. Lower rates could widen loan eligibility and bolster spring homebuying, with a $400,000 home at 20% down costing about $1,916 per month in principal and interest vs. $2,105 a year ago.
AI fears are driving markets as the 10-year U.S. Treasury yield moves toward 4%, prompting a shift into defensives and fixed income as tech stocks slump, even as the S&P 500 sits near its January high. Analysts warn AI spending could affect jobs and profits, making the path for yields and growth highly uncertain amid easing inflation and a calmer policy backdrop.
Mortgage rates held steady around 6.17% for the 30-year fixed, staying in a tight 6.15%–6.20% range after a two-week high; traders weighed two economic reports and a Treasury borrowing outlook that hinted at higher issuance (which could push yields up), but a tame services-sector release helped bonds stabilize and keep rates from moving much today.
Japan’s government bond market wobbled as investors priced in a clash between a spend-heavy fiscal stance under Takaichi Sanae and the BoJ’s tightening path, sending 30-year yields up sharply and the 40-year yield above 4% for the first time, ahead of the BoJ’s policy meeting.
At Davos, U.S. Treasury Secretary Scott Bessent dismissed concerns that Denmark or European investors could pressure Washington by selling U.S. Treasuries, calling Denmark’s bond holdings and the country itself 'irrelevant' amid tensions over Greenland. He noted a Danish pension fund’s divestment and pushed back on Deutsche Bank notes, blasted European rhetoric on Greenland and questioned the value of deploying troops there, as markets had already wobbled on Greenland fears and Japanese debt volatility ahead of Trump’s Davos appearance.
Donald Trump’s ultimatum to acquire Greenland, paired with broad tariffs, has unsettled markets: European creditors could curb U.S. debt demand, lifting Treasuries yields and nudging gold higher, as analysts warn of a self-reinforcing loop that could undermine fiscal credibility amid broader political and legal uncertainties.
Venezuelan bonds are expected to rise following the US's capture of Nicolás Maduro, with potential regime change and debt restructuring on the horizon, which could lead to significant gains for investors despite ongoing liquidity and political challenges.
U.S. Treasury yields slightly declined as investors considered strong Q3 GDP growth of 4.3%, which may influence the Federal Reserve's interest rate policy, with most expecting rates to stay steady until April. The bond market is preparing for holiday closures.
The 10-year Treasury yield decreased to 4.127% following lighter-than-expected November inflation data, indicating cooling price pressures and potentially influencing Federal Reserve policy. The CPI rose 2.7% annually, below expectations, and core CPI increased 2.6%. Meanwhile, initial jobless claims fell to 224,000, suggesting a resilient labor market.
Investors are concerned about the high AI-related spending by Big Tech companies, which is causing uncertainty and impacting the bond market.
The 10-year Treasury yield decreased following a surge in October layoffs and concerns over the legality of tariffs, with investors also watching the government shutdown for potential resolution, reflecting economic uncertainty.
Mortgage rates have risen to near two-month highs following stronger-than-expected economic reports on employment and the services sector, which weakened bonds and prompted lenders to increase rates, marking a shift since the Fed meeting in late October.
Wall Street ended October positively amid AI optimism and strong earnings, but Federal Reserve Chair Jerome Powell's comments about potential rate hikes and dissent within the Fed introduced uncertainty, causing bond yields to spike and the dollar to strengthen. Bill Gross is betting on rising yields due to high deficits and Treasury issuance, while market dynamics suggest a more complex outlook for interest rates and currency movements.
Despite the Federal Reserve cutting its benchmark interest rate, mortgage rates increased by 20 basis points due to market reactions and bond market expectations, leading to a temporary rise in mortgage costs even as refinancing activity surged.
Mortgage rates remain steady at their lowest levels in over a year, influenced by market factors like tariffs and regional bank issues, with bond yields showing signs of fatigue and potential for future movement depending on economic data and events.