Fed Lowers Interest Rate, Yet Long-Term and Mortgage Rates Rise

Long-term U.S. Treasury yields surged this week despite the Federal Reserve’s interest rate cut, as bond investors didn’t receive the reassurances they sought. The 10-year yield reached 4.145%, and the 30-year yield, tied to mortgages, rose to 4.76%. Selling of long-term bonds pushed prices down and yields up, signaling concerns over inflation above the Fed’s 2% target and economic stability. Rising yields impact mortgage and auto loans. Analysts note bond markets react to “bad news” and await clarity on future Fed policy. International yields also influence U.S. long-term rates, emphasizing global economic interconnections.