The 10-year Treasury bond broke a 4% yield today, a major resistance point for technical traders and a serious foreboding of higher mortgage interest rates to come.This was the first time the yield crossed 4% in 18 months, or since October 2008.
Higher yields are on the way, given weak demand for the bonds at the current coupon rates and wildly high inflation fears. Would you loan someone money with a balloon payment due in ten years at just 4% per year in this economic climate?
Just three days ago in this blog I warned readers of higher interest rates to come.
Guess what? They're here.
Robert J. Abalos, Esq.
