On the heels of the Fed's rate cuts yesterday and an accompanying statement that read in part that it "will employ all available tools" to promote economic growth, the average yield for 10 year Treasury notes fell below 2.15% earlier today for the first time since the Treasury began providing daily data in 1962.
30 year Treasuries also hit their lowest yields since sales of the security began in 1977, averaging 2.63%.
While there is no direct relationship between the two, mortgage rates tend to follow the direction of 10 year Treasury yields. With rates for 30 year mortgages already near historical lows, will we see them fall below 5 percent in the near future?
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