The initial down 5 % move was blamed on the 10 -
year bond yield jumping to 2.85 %.
When the 10 -
year bond yield jumps, expect mortgage rates to do the same.
Not exact matches
The
yield on the U.S. 10 -
year Treasury
jumped to its highest level since 2014 on Friday morning, underlining a wider move in
bond markets caused by central banks moving away from financial crisis policies.
Last
year, when the Fed hinted that it was going to stop buying
bonds, tapering its quantitative easing,
bond yields jumped nearly 2 % points in just a few days.
In the meantime,
bond yields have drifted higher and
jumped shortly after 2 p.m. ET, finally pushing the 10 -
year over 2.6 percent for the first time since mid-December.
Early in the
year,
bond guru Bill Gross warned clients that if the 10 -
year Treasury
yield jumped past 2.6 percent, bad things for the fixed income market would follow.
Yields on U.S. 30 -
year bonds, which are more sensitive than shorter maturities to the outlook for inflation, have
jumped almost 40 basis points since last Friday and a $ 15 billion auction of the tenor on Thursday showed waning appetite for the securities.
China's one -
year sovereign
bond yield has climbed 14 basis points since the devaluation, while the cost to insure the nation's debt against default
jumped to a two -
year high.
But this week the 10 -
year Treasury lost roughly 1.4 points, which translated into a 15 basis point
jump in its
yield to 2.84 % The long
bond closed over 3 %.
The U.S. 10 -
year bond jumped, sending its
yield briefly below 2 percent today.
At the same time, the U.S. 10 -
year Treasury
bond yield dipped from 2.43 % to 2.34 % week - over-week, while WTI oil prices
jumped to a 2 1/2 -
year high near $ 56.
The most recent rate hike, just this
year, was caused by a
jump in U.S.
bond yields.
But last week the benchmark 10 -
year U.S. Treasury
bond yield jumped to a six month high around 3.75 pct, while the spread between 2 -
year and 10 -
year bond yields widened to a record 2.75 percentage points.
The S&P Indonesia
Bond Index
jumped 15.25 % in 2017, while its
yield - to - maturity tightened 16 bps to 6.35 %, making Indonesia the best - performing country in Pan Asia for the
year.
Notice that all of these rates moved upward in May, and the steepest line belongs to 10 -
year bonds, which have seen
yields jump from 1.68 % at the beginning of the month to 2.07 % on May 29.
Q: Two funny article titles today: WSJ «Global
Bonds Swoon as Investors Bet on Inflation, Growth» and Bloomberg «Market Euphoria May Turn to Despair if 10 -
Year yield Jumps to 3 %».
The recent
jump in global
bond yields represents a reflationary reawakening just a
year after deflation and recession...