by Wolf Richter
Wolf Street
Mortgage rates also ticked up.
The Treasury yield curve is un-inverting piece by piece, but not in the way future homebuyers want: before and since the rate cut, shorter-term Treasury yields have fallen, driven by the Fed’s actual and expected rate cuts; but longer-term Treasury yields and mortgage rates have inched up.
As shorter-term yields drop while longer-term yields rise – or fall more slowly than shorter-term yields – the yield curve un-inverts step by step and eventually enters its normal state where all shorter-term yields are lower than longer-term yields.
But it still has a long way to go before it’s un-inverted all the way, to where shorter-term yields are lower than longer-term yields across the yield curve.