The 10-year finally broke through the key 3.03% resistance level and traded all the way up to 3.11%. While it looked like the 10-year was going to continue its climb closer to 3.20%, there have been some international growth concerns that have the 10yr back down to 3.01% currently.
The FOMC meeting came and went last week with little change in the Fed’s stance of 3-4 interest rate increases for 2018. If anything the Fed was slightly more dovish in their tone when they stated it’s possible they could slightly overshoot their inflation target of 2%. The translation of that means that perhaps there will only be three interest rate increases this year.
Today we are going to talk about what’s happening in the capital markets. On March 21st the Federal Reserve met and raised the benchmark rate by 25 basis points. Now what you may not have noticed or expected is that longer term interest rates actually came down since the meeting.
Today we are going to talk about what's happening in the capital markets. No doubt by now you are aware that the Federal Reserve met last week and raised the benchmark rate 25bps.
Today we are going to talk once again about what's happening with interest rates. Recall from mid-December to mid-February, the 10 year Treasury rose from 2.35% all the way up to 2.95%. Now in the last month it's down somewhat to around 2.85% while the market takes a little bit of a breather.
As you've seen over the past month interest rates have gone up over 40bps and there has been a lot of volatility in the stock market as well. It might feel like there is no end to the rise in interest rates as they are now up almost 75bps since July.
Today we are going to talk about what is happening with interest rates. As you've probably seen, longer-term interest rates and more specifically mortgage rates have been steadily climbing in the new year.
Don't look now but the 10yr yield is almost trading with a 1 handle. With the 10-year down 37bps on the year and now trading at 2.06%, 1.99% is just in sight. This is a psychological barrier that could spark a game-changing attitude about growth and the long-term prospects for rates.
It is without a doubt that if you were an investor in March of 2009, you should have bought stocks when uncertainty around the economic future thanks to the Financial Crisis was at its peak. Today marks the 8th anniversary of the "bottom".
The case for rates staying relatively low is somewhat backward facing but here are the main points to consider.