The Knudson File: 10 Year Treasury Rates Unchanged – Mortgage Rates Down 5 BPS

10 Year US Treasury rates remain unchanged for the week ending May 19th, 2022.  The short-term yield curve remains steep.

Lending Rates and Borrowing Costs

MORTGAGE RATES ARE NOW 5.48% For the 7-day period ending 5.19.22, 10 Year Treasury rates remain UNCHANGED while mortgage rates are DOWN 5bp. This caused the net spread to decrease 5bp to 96bp ABOVE the normal spread of 168bp.

10 Year US Treasury

Daily changes in the US 10 Year Treasury rates are the blue bars while the red line is the 14-day cumulative change in rates: 21bp decrease. Inflation results for April were favorable, hence the decrease in rates for the last 4 days. For the blue bars, it is unusual to have changes of greater than 0.10 in a single day and 0.20 is VERY unusual.

2022 Recent Yield Curve Changes

Inflation improved in April, and as such the Yield Curve dropped particularly for longer-term rates this past week (the red line is current, and green is last week). The Yield Curve remains virtually flat for 5+ years and the inversion are BACK.

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