Let's get the bond report. Rick Santelli has more on how the markets are reacting to all of these crossurrens. Rick, what can you tell us.>> Well, you know, I like the way the charts tell a picture. If you look at twos and tens when the number was released, a couple things should jump out at you. The twos definitely seem to be more aggressive in holding the upside.I don't think that's for any big reasons to explain the Fed or uh acknowledge percentages and probabilities. I think it's purely the next chart w ...

Let's get the bond report. Rick Santelli has more on how the markets are reacting to all of these crossurrens. Rick, what can you tell us.>> Well, you know, I like the way the charts tell a picture. If you look at twos and tens when the number was released, a couple things should jump out at you. The twos definitely seem to be more aggressive in holding the upside.I don't think that's for any big reasons to explain the Fed or uh acknowledge percentages and probabilities. I think it's purely the next chart w ...

Bitcoin has fallen below the $90,000 level, extending a pullback from its recent peak near $120,000 as investors grapple with uncertain macroeconomic signals and uneven liquidity conditions. Key Takeaways: Bitcoin fell below $90,000 as Fed uncertainty and tight liquidity kept investors cautious. Elevated interest rates and rising yields continue to limit institutional appetite for Bitcoin. Low exchange reserves show holder conviction, but analysts see consolidation rather than a near-term breakout. ...

Stocks were rising again on Friday as Wall Street looked to wrap up the final full week of 2025.The Dow Jones Industrial Average rose 300 points, or 0.6%. The S&P 500 was up 0.8%. The Nasdaq Composite was up 1%.The yield on the 2-year Treasury note was up to 3.49%. The 10-year yield was up to 4.15%. ...

Treasury yields a little higher this morning after dipping post Fed. They were up, they were down, back up again to 416 for the 10 year, the two years at 353. And joining us right now with his insights on the bond market and the Fed's decision on rates this week is Mark Cabana.He's head of US rate strategy at Bank of America Securities. And Mark, big week. >> It was >> heard a lot from the Fed.We're still trying to figure out what comes next. Um it's a split Fed at this point and we're going to probably hea ...

Core Viewpoint - The Federal Reserve's recent 25-basis-point rate cut signals ongoing efforts to support credit conditions as inflation trends toward a more acceptable level, with mortgage rates expected to gradually decline as a result [1][11]. Mortgage Rate Trends - The average 30-year fixed mortgage rate is currently between 6.19% and 6.30%, down from over 7% earlier in the year, while the average 30-year refinance rate is around 6.52% [3][9]. - Historical patterns indicate that mortgage rates typically ease following Fed cuts, although the timing can vary based on economic data and inflation signals [4][18]. - Adjustable-rate mortgages (ARMs) and home equity lines of credit (HELOCs) are the first to respond to Fed rate cuts, adjusting quickly due to their linkage to short-term benchmarks [6][19]. Market Dynamics - Fixed-rate mortgages, such as 30-year and 15-year loans, react more slowly to Fed actions as they are influenced by long-term Treasury yields, which depend on market expectations for inflation and growth [8][10]. - Recent market behavior shows that mortgage rates can move independently of Fed actions, often following longer-term bond yields [10][11]. Refinancing Opportunities - The current rate environment presents refinancing opportunities for borrowers with loans near or above the current refinance average of 6.5%, especially for those considering shorter-term loans [14][19]. - Analysts suggest that refinancing is beneficial when interest-rate savings exceed closing costs, with 15-year fixed rates averaging about 5.33% [14][19]. Housing Market Outlook - Economists predict that mortgage rates may continue to ease if bond yields remain stable, with some forecasts suggesting sub-6% rates for 30-year loans by late 2025 or early 2026 [15][16]. - Despite recent rate cuts, the housing market faces challenges such as tight inventory and elevated prices, which may hinder demand recovery [16][17]. Future Influences on Mortgage Rates - The trajectory of mortgage rates will largely depend on inflation and Treasury yields; sustained economic slowdown could lead to further declines in long-term yields [17][18]. - Any resurgence in inflation or signs of economic overheating could reverse recent declines in mortgage rates [17][18].

Core Insights - The article discusses the puzzling behavior of bond yields in the context of the Federal Reserve's rate cuts, highlighting a disconnect between expected outcomes and actual market reactions [2][4][5]. Group 1: Federal Reserve Actions - The Federal Reserve began easing rates last September, with a total reduction of 1.5 percentage points expected to continue through 2025 [4]. - A further quarter-point rate cut is anticipated, with traders pricing in additional cuts in 2026 [4]. Group 2: Bond Market Reactions - Despite the Fed's rate cuts, the 30-year Treasury yield is around 4.8% and the 10-year yield is approximately 4.17%, both of which have risen over the past month [6]. - Higher yields are impacting borrowing costs across the economy, contrary to the administration's goal of lowering mortgage rates and business loan costs [7]. Group 3: Investor Sentiment and Economic Factors - Investors are concerned about shifts in trade policy and increasing national debt, leading to a sell-off in government debt and rising yields [8]. - Historically, deficits have had minimal impact on Treasury yields due to the U.S.'s economic dominance, but current trade dynamics may be altering this relationship [9]. - Higher yields indicate that investors are demanding greater compensation for risks associated with rising deficits and policy uncertainties, reflecting skepticism about the Fed's continued rate cuts amid persistent inflation [11].

Treasury yields climbed to the highest in more than two months https://t.co/uPS0bx8eLK ...

Treasury yields edged lower, with the 10-year nearing 4%, as data affirming labor-market weakness and remarks from Federal Reserve Governor Stephen Miran bolstered expectations for an interest-rate cut next month. https://t.co/Q1JSw03zKd ...

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