May 19, 2024

I normally don’t even follow the bond market. But since I started my mortgage refinance last month, rates have shot up. (What great timing I have) Seems like nobody knows what’s going on in the bond market. And interestingly, there hasn’t been much public coverage of it. What gets me flustered is that I had a chance to lock in when rates were low at the end of June. But I thought the rate bump was just an aberration, so I decided to wait it out. But, the rates have just shot up since.

From Daily Reckoning:

The bond market continued its collapse last week. Yields on 10-year treasures were 3.07% on June 13th. Now, they’re 4.40%. This is the worst bond massacre in 20 years. It’s “a 100-year storm,” said Franklin Raines, CEO of Fannie Mae, whose bonds have fallen even more than U.S. Treasuries.

From Contrary Investory:

This Thing Has Turned Into A Runaway Train… the Treasury market experienced a three day rout that ranks among the top five three day “corrections” in bond market history.

I feel like going ahead and locking on my refi now, even with the large jump since last month. And what’ll happen is that if I lock, rates will drop. And if I don’t lock, rates will climb. Sigh… why do the markets always have to react opposite to what I do?