General Bond Trends
This week’s bond movement has the benchmark 10-year Treasury Note yield testing 4.00% again. This has been a pretty strong resistance level, having not broken below it in over a year. Each time it has come close, bonds go into selling mode, driving yields and mortgage rates higher. It is hard to imagine that it will break below that threshold and hold when there are no major economic reports being released. Still, it is something to watch. If it breaks below that level, we could see a downward trend in yields and mortgage rates begin. On the other hand, failing to move below 4.00% could mean yields and rates are set to make a move higher.