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Mortgage Rates Poised for New Lows
10-year Treasury yield sinks
By SAM GARCIA Mortgage Daily
Oct. 6, 2010
A key benchmark for mortgage rates -- the yield on the 10-year Treasury Note -- sank today, leaving mortgage rates poised to set a new record.
During trading today, the yield on the 10-year Treasury Note was 2.375 percent, according to data reported by WSJ.com. The price, which moves in the opposite direction as the yield, was 28/32 higher.
Mortgage rates, which are packaged into bonds -- or mortgage-backed securities -- move with bond yields. Prices on mortgage bonds filled with fixed-rate mortgages are heavily influenced by the yield on the 10-year Treasury Note.
A week ago, the 10-year yield was 2.52 percent, based on data reported by the U.S. Department of the Treasury.
Freddie Mac reported last week that the 30-year fixed rate stood at a record-low 4.32 percent.
Today's Treasury activity suggests the 30-year could fall below 4.20 percent.