housing market


PHOTO: Interest Rates

International interest rate markets continue to slide. The global benchmark for interest rates, US Treasury bonds, have declined.

The US was the standalone star in global markets, but the outlook has quickly deteriorated. The 10-year US government bond rate has fallen from a high of 3.25% late last year, to 2.49% today, having marked a recent low of just 2.33%. That’s a big move. Looking at the Fabulous Fed Funds Futures (say that fast
five times), traders have bet the US Fed will cut by year-end.

The Dec’19 contract has a rate of 2.2%, currently 2.45%. Of course, the market doesn’t stop there. Another 2(ish) cuts to 1.9% are priced over 2020. That’s a big change from the hike


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