Tuesday, January 31, 2023 / by Brittany Aspenson
Recession Or Not, Mortgage Market Is Starting To Come Back Strong
Yields on Treasury notes rose after the release of the report with the 10-year yield climbing 2 basis points to 3.485%. The yield on the 2-year Treasury note also increased, moving up by 3 basis points to 4.166%. The 10- and 2-year yields have been inverted since June of 2022 which is typically a strong indicator of a recession.
The labor market also continues to show resilience with jobless claims continuing to decline week-over-week. That is a sticking point for the Federal Reserve as it continues its quantitative tightening (QT) measures to try and reign in inflation. A strong labor market may indicate that QT measures are not working and need to be tighte ...