- Long-end Treasury yields have risen about 100 basis points over six months, with the 10-year yield participating in the advance.
- BNP Paribas argues that other forces beyond fiscal deficits have dominated recent yield increases, but that this shifts as deficits deteriorate and the interest burden rises.
- With the 10-year Treasury up sharply and the US economic outlook unclear, 8% mortgage rates are back on the table.
Quotes
“Long-end Treasury yields have advanced about 100 basis points over the past six months”
“Deteriorating deficits and higher interest burdens could expand term premiums and push long-end yields higher.”
“some say 8% mortgage rates are back on the table”