Free Trial

Mortgage Rates Outclimb Treasuries As They Hit New 2008 Highs

  • Mortgage rates continued to jump higher today, rising another 23bps to 5.89% for a 90bp increase from early August levels (Freddie Mac 30Y). Through the prior Jun 23 high of 5.81%, it’s a fresh high since 2008.
  • This has outstripped a ~70bp ramp higher in 10Y Tsy yields over the same period, continuing to show the speed at which a re-tightening of financial conditions (Goldman noted a fresh peak in the FCI yesterday) is feeding through to the real economy.
  • Despite this re-tightening of conditions and the implications this could have on growth, 2s10s remains off flats, currently at -20bps versus prior lows of -50bps.

30Y Freddie Mac rate (yellow), 10Y Tsy yield (pink), 2s10s spread (green)Source: Bloomberg

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.