Treasury Snapshot: 10-Year Yield Slips But 30-Year Fixed Mortgage Soars

Includes: IEF
by: Doug Short

What's New: I've updated the charts below through yesterday's close (June 27). The latest Freddie Mac Weekly Primary Mortgage Market Survey, out yesterday, puts the 30-year fixed at 4.46%, the highest since August of 2011.

The yield on the 10-year note closed yesterday at 2.49%. That's 11 basis points off its interim closing high of 2.60% on Monday.

Here is a snapshot of the 10-year yield and the 30-year fixed mortgage since 2008.

(Click to enlarge)

A Perspective on Yields Since 2007

The first chart shows the daily performance of several Treasuries and the Fed Funds Rate (FFR) since 2007. The source for the yields is the Daily Treasury Yield Curve Rates from the U.S. Department of the Treasury and the New York Fed's website for the FFR.

(Click to enlarge)

Now let's see the 10-year against the S&P 500 with some notes on Federal Reserve intervention. Fed policy has been a major influence on market behavior. It will be interesting to see how the index fares in the wake of the latest Fed communications on the timetable and conditions for tapering QE.

(Click to enlarge)

For a long-term view of weekly Treasury yields, also focusing on the 10-year, see my Treasury Yields in Perspective, which I update on weekends.