Today we are going to talk once again about what's happening with interest rates. Recall from mid-December to mid-February, the 10 year Treasury rose from 2.35% all the way up to 2.95%. Now in the last month it's down somewhat to around 2.85% while the market takes a little bit of a breather.
As you've seen over the past month interest rates have gone up over 40bps and there has been a lot of volatility in the stock market as well. It might feel like there is no end to the rise in interest rates as they are now up almost 75bps since July.
Today we are going to talk about what is happening with interest rates. As you've probably seen, longer-term interest rates and more specifically mortgage rates have been steadily climbing in the new year.
Don't look now but the 10yr yield is almost trading with a 1 handle. With the 10-year down 37bps on the year and now trading at 2.06%, 1.99% is just in sight. This is a psychological barrier that could spark a game-changing attitude about growth and the long-term prospects for rates.
It is without a doubt that if you were an investor in March of 2009, you should have bought stocks when uncertainty around the economic future thanks to the Financial Crisis was at its peak. Today marks the 8th anniversary of the "bottom".
The case for rates staying relatively low is somewhat backward facing but here are the main points to consider.
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