US 10-year Treasury yields have surged about 130 basis points and 30-year yields have climbed 100 basis points since late February, reflecting a war-driven oil-price spike that has kindled expectations for multiple Federal Reserve rate hikes over the next 12 months. The sharp rise in long-term US Treasury yields has spurred mortgage-related hedging that adds selling pressure to an already strained bond market, though the impact is likely smaller than in past selloffs.
The rise in yields has pushed 30-year mortgage rates to a nearly three-year high of 7.4 per cent, keeping many homeowners locked into existing loans rather than refinancing as they often do when rates decline.
