Treasury Sell-off Pressures Mortgage Rates

The yield on the benchmark 10-year Treasury has been creeping up again and at mid-day was at 3.4%, putting upward pressure on mortgage rates. It's the first time in several months that the yield on the 10-year has been that high. On Thursday the 10-year closed at 3.2%. "The Treasury market suffered a severe sell off," Jefferies & Co. said in a Friday morning report. The report said some of the selling was the result of concern over Standard & Poor's decision to put the United Kingdom on negative watch from a ratings perspective, which put pressure on U.K. government bonds. Comments made by influential investment fund executive Bill Gross also hurt the market. Mr. Gross predicted that the U.S. may "eventually" suffer the same fate as the U.K.