Blog Category: bond market

bond market report

Latest Bond Market Report – January 2020

The 10 Year Treasury Bond was at 1.822% on January 10th 2020.

It was 1.847% as of October 28th 2019.

So you can see that rates have been fairly flat for the last 2+ months.

The 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply good to know historical information on Treasury bond rates.

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bond market report

Latest Bond Market Report – October 2019

The 10 Year Treasury Bond was around 1.8% as of October 28th 2019.

 

The 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply good to know historical information on treasury bond rates.

 

On August 2nd 2019 the 10 Year Treasury Bond was 1.846%.

 

On September 3rd 2019 the 10 Year Treasury Bond was 1.461%.

 

Below are some interesting historical numbers:

In 2018 the average yield of the 10 Year Treasury Bond was 2.91%.

In 2017 the average yield of the 10 Year Treasury Bond was 2.33%.

In 2007 the average yield of the 10 Year Treasury Bond was 4.63%.

In 1997 the average yield of the 10 Year Treasury Bond was 6.35%.

In 1987 the average yield of the 10 Year Treasury Bond was 7.18%.

In 1977 the average yield of the 10 Year Treasury Bond was 7.42%.

 

Where is the 10 Year Treasury Bond headed next? Stay tuned!

 

*The source for these numbers comes from:

https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart

and

https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

bond market report

Latest Bond Market Report – June 2019

The 10 Year Treasury Bond was at 2.08% as of last Friday*. This is the lowest it has been in a long time.

QUESTION: But what does this mean for mortgage rates?

ANSWER: In general, mortgage rates are flat recently, but down over the last few months.

QUESTION: Do mortgage rates rise and fall in lockstep with the 10 Year Treasury Bond?

ANSWER: No.

QUESTION: What variables affect mortgage rate quotes.

ANSWER: Loan size, loan type, property type, credit score, down payment, debt ratios, and more.

 

Where are the 10 Year Treasury Bond, and more importantly mortgage rates, headed next? Check back here to see!

 

*The source for the 10 Year Treasury Bond quote comes from here: https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

bond market report

Bond Market Report – April 2019

 

The 10 Year Treasury Bond is at 2.56% as of last Friday. This is about the same as the last time I posted 10 Year Treasury Bond data in early January.

On 01-03-2019 the 10 Year Treasury Bond was 2.55%.

The 10 Year Treasury Bond is not a direct correlation to mortgage rates. It is simply a good to know historical information on treasury bond rates.

Below are some interesting historical numbers*:

In 2018 the average yield of the 10 Year Treasury Bond was 2.91%.

In 2017 the average yield of the 10 Year Treasury Bond was 2.33%.

In 2007 the average yield of the 10 Year Treasury Bond was 4.63%.

In 1997 the average yield of the 10 Year Treasury Bond was 6.35%.

In 1987 the average yield of the 10 Year Treasury Bond was 7.18%.

In 1977 the average yield of the 10 Year Treasury Bond was 7.42%.

Where is the 10 Year Treasury Bond headed next? 

 

*The source for these numbers comes from: https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart

bond market report

Bond Market Report – January 2019

 

I am going to post numbers on the 10 Year Treasury Bond on a regular basis. The 10 Year Treasury Bond is not a direct correlation to mortgage rates, but it is a good number to know.

 

As of 01-03-2019 the 10 Year Treasury Bond was 2.55%.

 

Below are some interesting numbers*:

In 2018 the average yield of the 10 Year Treasury Bond was 2.91%.

In 2017 the average yield of the 10 Year Treasury Bond was 2.33%. Read More

Good News For Stocks Is Bad News For Bonds/Rates

It looks like rates are edging up today, again. Here is this morning’s bond market update from MBS Online:

“MBS are down -13/32 (FNMA 30-yr 3.0 at 103.23), around 16/32 lower than yesterday at this time. Unfavorable repricing took place yesterday. Early investors may have priced at levels as high as -10/32.

Global investors have continued to shift to riskier assets today, pushing major US stock indexes to multi-year highs, and hurting bonds. Stronger than expected economic news from Europe was the main influence today. MBS prices have dropped to levels last seen in September. The Dow is up 50 points. New Home Sales will be released at 10:00 ET.” Read More

Mortgage Backed Securities MARKET UPDATE

I wanted to share today’s update from MBS Online, which is the service that I use that tracks mortgage-backed securities, which is the best gauge of what the interest-rate market is doing. Here is this morning’s update:

“Stronger than expected labor market data hurt MBS this morning. Weekly Jobless Claims fell to 330K, below the consensus of 360K, and the lowest level since January 2008. This marks the second straight week that Jobless Claims were below the 350K level, which may signal that stronger Employment gains will be seen. The Dow is up 50 points. Leading Indicators will be released at 10:00 ET.”

My take on this is that this is one more slight signal that puts the bond market and mortgage-backed securities under pressure, and is another small bit of data that has helped to push up interest rates lately.

The 10 Year T-Bond has jumped from 1.83% yesterday to 1.86% this morning. For mortgage consumers this can mean a slight increase in points, but not necessarily rates, or if the negative news continues then rates may increase 1/8%.

AFTERNOON UPDATE: “MBS are down -10/32 (FNMA 30-yr 3.0 at 104.02), around 6/32 below morning levels, and at the low for the day. Unfavorable repricing took place. Stronger than expected Jobless Claims data caused MBS to move lower today. Manufacturing data in Europe and China also exceeded expectations. Leading Indicators rose 0.5%, matching the consensus. The Dow is up 50 points. The S&P 500 index crossed above the 1,500 level for the first time since December 2007. Tomorrow, New Home Sales will be released at 10:00 ET.”

Keep your eye on this blog for more news soon, but this seems to be the year that many people think that interest rates will rise. Let’s see if the news and the data cause that to happen.

Latest Bond Market News

I am going to continue to post, when appropriate, updates from the service I use called MBS Quoteline, that updates me on the bond market. Remember that in general, inflationary news is bad for the bond market and interest rates, and deflationary or recessionary news is positive for the bond market and interest rates. The news for today is: Read More