MORTGAGE RATES HIT 6.75%, HIGHEST SINCE JULY
30-year mortgage rates rose to 6.75%, the highest since July, up 7 bps in a day and 33 bps over 10 days, according to Mortgage News Daily.
Rates are now 46 bps above April lows after rebounding from war-driven volatility that pushed them near 6.6% in March.
Mortgage News Daily’s Matthew Graham says bond markets are signaling pressure on policymakers to end the war or face further economic strain.
The move has lifted monthly payments by about $167 on a median-priced home, highlighting renewed pressure on housing affordability.
BOND YIELDS MAY TRIGGER TRUMP ACTION
Wolfe Research says rising U.S. bond yields—not stock declines—are the key trigger that could force White House action on the war.
Analyst Chris Senyek warns inflation is pushing yields higher, and policymakers are more likely to respond to bond market stress than equity weakness.
The firm also flags stretched stocks and risks from inflation, energy, AI spending, and credit stress, but sees bonds as the main pressure point.
PENTAGON LEAVES DOOR OPEN TO RENEWED IRAN STRIKES
A senior Pentagon official declined to rule out renewed US military action or ground troop deployment in Iran, saying those decisions remain with President Trump.
The Pentagon also did not say whether the administration would seek congressional authorization if operations against Tehran resume, while noting diplomatic negotiations are still ongoing.
📈MARKETS PRICE IN FED RATE HIKES
Kalshi markets now show rising odds of a Fed rate hike before July 2027, as inflation fears, higher oil prices, and strong US growth drive a sharp shift away from rate-cut expectations.
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BOND SELLOFF DEEPENS AS INFLATION FEARS WEIGH ON MARKETS
US stocks fell as rising oil prices and inflation concerns extended the selloff in government bonds, pushing 10-year Treasury yields to their highest level since February 2025.
Markets remain focused on the risk of prolonged Middle East tensions driving energy costs higher, even after President Trump signaled a delay in potential military action against Iran.
Investors are also watching major earnings this week, including Nvidia, alongside the expected filing of SpaceX’s IPO prospectus.
TRUMP DENIES XI TOLD HIM THAT PUTIN WOULD REGRET UKRAINE WAR
US President Donald Trump denied reports that Chinese President Xi Jinping said Vladimir Putin would regret invading Ukraine, calling the claim false.
The Financial Times had reported Xi made the remarks during recent talks with Trump in Beijing. The Kremlin and Beijing relationship remains closely tied, with Russia increasingly reliant on China amid sanctions.
