Yields on 10-year U.S. Treasury notes and 30-year Treasury bonds remained above 5% Wednesday, CNBC reported, as investors awaited Thursday’s weekly jobless claims report ahead of the Federal Reserve’s Oct. 27-28 meeting.
CNBC’s market snapshot put the 10-year yield at 5.106%, down more than one basis point, and the 30-year at 5.409%, also down more than one basis point. The two-year yield rose by less than one basis point to 4.789%, leaving it below 5%. A basis point is 0.01 percentage point. Bond prices and yields generally move in opposite directions, CNBC said. The 10-year Treasury is a key benchmark for mortgage, auto and credit card borrowing, while the two-year is more closely tied to short-term Federal Reserve decisions, the outlet reported.
The Mortgage Bankers Association (MBA) said its average contract rate for conforming 30-year fixed mortgages fell to 7.41% last week from 7.50%. In the same weekly survey, purchase applications were 18% below their level a year earlier. The MBA said higher rates were pricing buyers out, despite the first decline in mortgage rates in more than two months.
The Labor Department reported that initial claims rose by 1,000 to 199,000 for the week ended Oct. 10. The department’s next report, due Oct. 22, covers the week ended Oct. 17. Earlier Treasury data also showed both the 10-year and 30-year yields above 5% on Oct. 15, as detailed in EconoTimes’ account of that session’s Treasury curve. EconoTimes also covered the earlier 199,000 initial-claims reading.
The Federal Reserve’s calendar lists its next meeting for Oct. 27-28, with the rate announcement scheduled for Oct. 28.
