The following is an excerpt from Mortgage News Daily. For the full story click here.
Plain and Simple: Because the overall economic environment is cloudy and the Federal Reserve is still quite cautious, investors will remain defensive, which will prevent benchmark Treasury yields from moving significantly higher. On the flip side, equity bulls will rely on "THE WORST CASE SCENARIO WAS AVOIDED" perception as a reason to speculate that long term "buy low, sell high" investment strategies will be profitable. This will help stocks maintain positive progress instead of retracing back to "worst case scenario" lows. This risk taking attitude combined with a slowly recovering economy (anything but drastically worse) will prevent benchmark 10s from revisiting the days of old when 10s held between 3.27 and 3.51%. The rates of 2009 look to be a thing of the past.
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