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Treasury yields fall, with 10-year at 5.622% and MBS up
The drop followed war related headlines and a strong 30-year bond auction, with the 10-year yield down 5 basis points to 5.622%.
Treasury yields fell over the past several trading sessions, pushing the 10-year yield to 5.622%, down 5 basis points, according to Mortgage News Daily. The publication said the most recent rally built on intraday lows of 5.151% on October 2.
Mortgage News Daily attributed the reversal to investors buying lower in bond prices, with yields finding a supportive ceiling around 5.33% to 5.35%. It also pointed to mid-day gains after war related headlines and said a decently strong 30-year bond auction added support.
The bond auction was described as a “ho-hum” Treasury event in isolation, but Mortgage News Daily said it would have appeared stronger without the rally that occurred before it. It also reported mortgage-backed securities were up nearly a quarter point.
Looking ahead, Mortgage News Daily said there was no major data scheduled for the next day, even as Treasury yields sat near their best levels. It noted that for a truly big shift, the 10-year yield would likely need to fall below 5.0% more than a month from now.