Bond yields were down yesterday to 2.07, a drop of 0.07. Four weeks ago it was 1.85. The spread is now 1.71%.
Here is some information from Merix economist, John Bordignon, on the rates:
Spreads have really come down and not sure how long this is going to last. If bond yields get any higher I would say that rates are going to start to move up. I think the Big Banks are keeping the rates artificially low because of the spring season and don’t wish to be perceived as making things harder for consumers. I anticipate that the stock market will be down today (which it was) so we may see an easing on the bond yield side (bond yield will drop). Keep watching them and if they continue to rise, I believe we will see a rate increase.
