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Leap Day February 29, 2008 In Review

Sunday, March 2nd, 2008


Unlike all the hype you hear from advertising, and sadly people who should know better, mortgage rates are more closely related to trends in Treasury Bond yields,  and definitely not directly to Federal adjustments of the prime rate.    This is a spot picture of where we were on 2/29/08. 


The Yield on the 30-Year Bond – As stocks got crushed, there was a flight to quality into US Treasuries.   The yield on the 30-Year US Treasury Bond tested 4.699 on Wednesday, as inflation fears trumped another rate cut by the Federal Reserve on March 18.   Then as stocks got clocked on Thursday and Friday a renewed flight to quality pulled the 2-Year note yield down to 1.616, a new low for the move. The bond ended the month at 4.473.     Monthly resistance is 4.066.



30 Year Treasury Bond Yield FPE 02/29/08


30 Year Treasury Bond


30 Year Treasury Bond Rates FPE 2/29/08


Chart Courtesy of Reuters and