Treasuries Decline as Stimulus Plan, Stocks Dim Demand for Debt

Mortgage and Lending with Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL
Ten-year Treasury notes fell for a second day as gains in stocks drew investors from government debt, pushing yields up from close to the lowest since 2003.

Demand for the relative safety of U.S. notes and bonds waned on speculation that further cuts in borrowing costs by the Federal Reserve and an economic stimulus package will avert a recession.

Losses in Treasuries were limited as a report showed the nation's housing slump deepened. Purchases of existing homes fell 2.2 percent to an annual rate of 4.89 million, the National Association of Realtors said today. For all of 2007, sales of single-family homes declined 13 percent, the most since 1982, and prices dropped for the first time in at least four decades.

I still predict a 1/2 point rate next week.


Comments (1)

Mike Tullio
Guaranteed Rate NMLS# 2611 - Sarasota, FL
VP of Mortgage Lending
Hey Kris.  Wow, did rates ever take it on the chin today?  It had to correct.  I was seeing 30-yr. fixed rates in the 5.25% range and this rally couldn't last forever.  I agree with you on the .50% Fed funds rate cut.  The risk of recession is far greater than the threat of inflation right now.  Keep up the good work brother.
Jan 24, 2008 07:36 AM