Fed Rate Cuts Actually Raise Rates
As we noted on 02/07, the Fed cuts have raised bond and mortgage rates. Bloomberg also noticed...
Companies are paying more to borrow now than before the Fed reduced its benchmark rate by 1.25% over nine days in January, based on data compiled by Merrill Lynch & Co.
The extra yield investors demand to buy investment-grade U.S. corporate bonds rose to 2.37% Feb. 12 from 2.24% on Jan. 21,
Rates on so-called jumbo mortgages, those above $417,000, have increased in the past month, making it tougher to sell properties and risking further price declines.
Companies are paying more to borrow now than before the Fed reduced its benchmark rate by 1.25% over nine days in January, based on data compiled by Merrill Lynch & Co.
The extra yield investors demand to buy investment-grade U.S. corporate bonds rose to 2.37% Feb. 12 from 2.24% on Jan. 21,
Rates on so-called jumbo mortgages, those above $417,000, have increased in the past month, making it tougher to sell properties and risking further price declines.
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