Updated: Apr 10, 2022
For the 7 day period ending 4.7.22, 10 Year Treasury rates increased 31bp while mortgage rates were up 5bp. This caused the net spread to Decrease 25bp to 58bp ABOVE the normal spread of 168bp. Bond investors are trying to get ahead of the Fed’s future moves. Rates ROCKET up and feather down.
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: 52bp 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.
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 4bp ABOVE 10-year rates.