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 NEW YORK (AP) - Investors' expectations of an interest rate cut — and home buyers' hopes for cheaper mortgages — seem to be disappearing.
The yield on the Treasury's 10-year note passed 5 percent Thursday, closing at a session high of 5.13 percent, its highest point since mid-July. Some market watchers say the yield is likely to climb higher as bond prices weaken, making it even harder for consumers to finance home puchases and for companies to borrow money.
If the yield reaches 5.25 percent, a five-year high, it would match the Federal Reserve's current benchmark interest rate — signaling that the market is, in a sense, beating the central bank to the punch in hiking rates to curbing inflation.
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