The 10-yr yield has been threatening 4% for the last few sessions and it finally moved through to close at 4.13%. Granted every investor is fully aware of the Fed’s intention, with 75bps expected in November, and very likely in December. But seeing it close at the highest level since 2008 remains stark. Economic data today was housing heavy, and it showed the weight of higher rates. While Building Permits ticked slightly higher (+1.4% m/m), Housing Starts fell after their brief August pop (-8.1% m/m), and Mortgage Apps fell once again.
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