Treasury bonds

Federal Reserve Bank of St. Louis President James Bullard said he supports raising interest rates by a full percentage point by the start of July — including the first half-point hike since 2000 — in response to the hottest inflation in four decades.

Treasury yields rose a second day amid increasing conviction that the Federal Reserve will raise rates at least three times beginning in May.

Rising inflation and moves by the Federal Reserve are expected to fuel interest rate growth into 2022.

Depressed Treasury yields have kept mortgage rates under 3% recently, but positive economic news could indicate larger increases will follow this week’s uptick.

While it’s the third straight week of a downward trend, borrowers likely have only a brief opportunity to take advantage of sub-3% rates before a reversal comes.

Just because the Fed is staying put doesn’t mean that mortgage rates, and prices of MBS, are staying put as well, writes Vice Capital Markets Principal Chris Bennett.

Today, the mortgage players who most actively hedged — Fannie and Freddie, real estate investment trusts and large bank servicers — have significantly reduced their need to to do so, analysts said.

After they reopened on Tuesday, Treasury 10-year yields rose four basis points to touch 1.25% — the highest since last March — while the 30-year equivalent pushed above 2%.

The best mortgage bonds to buy now may be the ones the Federal Reserve is purchasing, because the securities might benefit the most if macro optimism fades.

The 10-year U.S. Treasury yield rose to its highest level since 2011, extending a selloff in the world’s biggest bond market and raising fresh questions about how high America's borrowing costs will climb.

If 10-year Treasury yields remain at or above 3%, the average 30-year fixed-rate mortgage could hit 5% sooner than previously expected.

Yields on the 10-year Treasury hit their highest level since the start of 2014 and got very close to cracking the 3% mark, signaling a potential spike in mortgage rates.

As inflation fears put upward pressure on 10-year Treasury bonds and mortgage rates nationally, borrowers could start to take more notice of what lenders are charging them locally.

Financial firms have mostly shrugged off the government's budget woes, but Washington's gridlock might pose a bigger risk than they think.

The tax reform bill Congress sent to President Trump's desk this week is likely to prompt at least a short-term spike in mortgage rates.