10 Year US Treasury Rates Increased 31 BSP

For the 7-day period ending April 7th, 2022, 10-Year Treasury rates increased 31 bps while mortgage rates were up 5 bps. This caused the net spread to Decrease from 25 bps to 58 bps ABOVE the normal spread of 168 bps. Bond investors are trying to get ahead of the Fed’s future moves. Rates ROCKET up and feather down.

Lending Rates and Borrowing Costs

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: 52 bps increase. 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.

10 Year US Treasury

The Yield Curve increased this past week (the red line is current and the green is last week). The Yield Curve is virtually flat and does have a slight inversion with 5-year rates being 4 bps ABOVE 10-year rates.

Yield Curve

Bill Knudson, Research Analyst Landco ARESC