The Fed cut its interest rate, but long-term rates — including those on mortgages — went higher

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The Fed cut its interest rate, but long-term rates — including those on mortgages — went higher (www.cnbc.com)

From the post:

>Longer-term Treasury yields jumped this week, flying in the face of the Federal Reserve’s interest rate cut, as bond investors didn’t get the assurances they sought. The 10-year Treasury yield jumped as high as 4.145% after briefly falling below 4% this week. The 30-year Treasury yield — closely followed for its connection to home mortgages — traded around 4.76%, up from a low of 4.604% earlier in the week.

Archive: https://archive.today/rPZIu From the post: >>Longer-term Treasury yields jumped this week, flying in the face of the Federal Reserve’s interest rate cut, as bond investors didn’t get the assurances they sought. The 10-year Treasury yield jumped as high as 4.145% after briefly falling below 4% this week. The 30-year Treasury yield — closely followed for its connection to home mortgages — traded around 4.76%, up from a low of 4.604% earlier in the week.

(post is archived)

[–] • 1 pt

I'm watching this with keen interest. The Fed controls overnight borrowing but bonds and treasures are controlled by the market. Investors aren't showing a lot of faith in the government right now.

If you would have bought TLT earlier this month you would have timed this correctly, but it isn't certain treasuries will behave like they should with lower rates as the market is showing anemic demand. Will TLT continue to rise or will it fall as low demand for treasuries continue?

I'm still up in the air about this. I'm thinking it might remain flat and perhaps a short iron condor trade would be in order.

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