We knew this day would come; the day the bond markets unwound as stress subsides regarding the prospect for European bond defaults. Bond prices in the US are dropping hard, driving interest rates higher. The price on the 10 year note has fallen over 1.00%, causing the yield to spike to 3.33%.
The big news driving this was the commitment by China to their European investments, stating China is a long term investor in Europe.
The US economic data had little effect on the markets. GDP for the first quarter was revised lower to 3.00%, and first time claims for unemployment fell 14,000 last week.
So, the glass half full---mortgage rates remain well below 5.00%, for now.
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