The long-term rate-indicative 10-year Treasury yield Monday morning started the day at a new low of 1.4%.
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Shortly before noon, the benchmark yield was slightly higher at 1.43%, but was still below its previous low of 1.44%.
Economists have been expecting long-term rates to remain low this year because the Federal Reserve recently extended its Operation Twist program, maintaining downward pressure that the program puts on long-term rates.
Operation Twist’s extension “pretty much assures” both the long-term rate-indicative 10-year Treasury yield and longer-term mortgage rates will remain low for the rest of 2012, Freddie Mac vice president and chief economist Frank Nothaft told this publication in an interview.
