Rising Treasury yields threaten a recent plunge in mortgage rates

Date:

Share post:


Greenland shock feeds a broader ‘sell America’ trade

The yield spike forms part of what one strategist described as a broad rotation out of US assets after Trump threatened 10% tariffs on eight European countries as part of his Greenland campaign.

“This is ‘sell America’ again within a much broader global risk off,” Krishna Guha, head of global policy and central banking strategy at Evercore ISI, wrote.

“On the other side of trade, deficits, and trade wars, there are capital and capital wars,” Bridgewater Associates founder Ray Dalio told CNBC. “Maybe there’s not the same inclination to buy … U.S. debt and so on.”

Mortgage slowdown fears despite rate reprieve

Just days earlier, Freddie Mac said the average 30‑year fixed rate tumbled to 6.06% by January 15, nearly a full percentage point below the 7.04% level a year earlier, with the 15‑year fixed slipping to 5.38%.

The 30‑year average has not been that low since September 2022, when it was still climbing on the back of aggressive Federal Reserve hikes.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Related articles

America’s bid for energy supremacy is being forged in war

Additional work by Jana TauschinskiOil and gas tanker location and destination data are from Kpler. The map...

Rate cuts seen as more likely next move for Bank of Canada: TD

Resilient growth and contained inflation pressures suggest the Bank of Canada is more likely to ease than...

Businesses spending $4 million to cross the Panama Canal as ‘it’s safer’ than the Strait of Hormuz

Businesses have doled out as much as $4 million for last-minute plans to move boats through the Panama...