Updated: Mar 11, 2022
For the 7 day period ending 3.10.22, 10 Year Treasury rates increased 12bp while mortgage rates increased 9bp. This caused the net spread between the two to decrease 3bp to 39bp above the normal spread of 168bp.
It appears the mortgage market is positioned for anticipated rate increases by the Fed on 3.15.22.
Daily changes in the US 10 Year Treasury rates are the blue bars while the red line is the cumulative change in rates since 2/17/22. Cumulative changes over the past 14 trading periods resulted in a 1bp decrease.
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 time period below includes the impact of Russia’s attack on Ukraine.