Interest Rates Hit Refi Boom Low Again


June 2, 2005 LOS ANGELES -- On Wednesday our bond market saw a rally for a second session. This drove long-term yields low points not seen in the past 14 months.

Some interesting news as far as the Fed and their measured interest rate hikes is concerned today. For starters, a Fed official made comments after the manufacturing report was released indicating that the Central Bank's rate-hike campaign is close to fruition.

On Wednesday the the U.S. dollar crept up to an eight month high against the euro. This likely can be attributed to preliminary results indicating that Dutch voters rejected the proposed European Union constitution by a landslide amount.

Back home, the benchmark 10-year Treasury note jumped 25/32 of a point to 101-29/32. This brings the yield to 3.89 percent, the lowest since the first week of April 2004. The U.S. 30-year bond surged 1-15/32 of a point to 117-24/32 bringing a yield of 4.23 percent, this figure down from 4.31 seen in the first session. - Article by Stockton Marquette.


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