While short-term interest rates are most sensitive to the activity of the Federal Reserve — which hiked the federal funds rate a third time for the year in September — the market dictates long-term rates.
It is used as a benchmark for many other types of debt, including corporate and agency bonds, such as Fannie Mae and Freddie Mac. Movements in the 10-year government rate can also have a direct impact on consumers.
The rate is a barometer for 30-year fixed mortgage rates, auto loans, student loans and credit card annual percentage rates.
The long-term chart of these rates shows how they all move in tandem with the 10-year yield.
10-year Treasury rate vs. mortgages, auto loans and corporate debt (click to enlarge)
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