Our favorite interest rate instrument, the ICE futures on the 10-year yield traded up to 2.3900% this morning, the highest print since May 2019. 2.3730% last.
From Wolf Street:
10-Year yield hits 2.31%, 30-year fixed mortgage rate hits 4.66%. And why the funny kangaroo-shaped yield curve says nothing about the economy.
Another day, another rout in the bond market. Bond yields are an inverse reflection of bond prices: rising yields means bond prices fell. The 10-year Treasury yield at the moment spiked by 16 basis points to hit 2.31% in afternoon trading, the highest since May 2019.
One of the trigger points was possibly – though you can never really tell with these crazy markets – that Fed Chair Pro Tempore Jerome Powell spoke, confirming the Fed’s new-found religion in using its monetary tools to tamp down on inflation, at least a little bit, while trying to achieve a “soft landing” or at least a “soft-ish landing.”
His speech included a line that stated that the Fed may impose bigger rate hikes, such as 50-basis-point rate hikes, (possibly plural) if needed to get there....
....MUCH MORE
