The US 30 year yield has risen to the highest level this year. The yield reached 4.115%. That took out the high yield from July 10 which reached 4.086%. The yield is trading at the highest level since November 10.
For the day, the yield is up about 9 basis points on the day.
Looking at the yield curve, the spread between the 2 year and the 30 year is still negative by -79 basis points, but that is less negative ve the July low level of -109 basis points and the March low at -118 basis points. At -79 basis points, that level is still righ near the low from 2000 when it was at -79.5 basis points.
If the yield curve would normalize, or even just go to 0.0 basis points, does the 2 year move lower. It's at 4.90% already below the Fed target of 5.5% by -60 basis points, or does the 30 year move sharply higher. If that is the case, what do mortgage rates do? Is that what is needed when builders need incentive to build more? Tough situation.
