The 10-year Treasury benchmark fell 11 basis points in the final two sessions of October, from 5.05% to 4.94%. Monday’s trading extended the relief. For Washington, businesses and mortgage borrowers, the direction matters—but credit spreads will determine how much of that relief reaches the real economy. AI-generated conceptual illustration: Treasury borrowing costs connect … [Read more...] about Treasury Yields Retreat: Relief for Borrowers, but Watch the Credit Spreads
Bonds
AI Debt Risks: Credit Default Swaps Trading Surges as Infrastructure Costs Mount
The AI investment boom is facing closer scrutiny in credit markets. Investors are examining how quickly spending on chips, data centres and electricity can turn into dependable cash flow—and who bears the losses if projects run late or demand disappoints. The Financial Times reported on 20 October that weekly CDS trading across seven technology borrowers averaged more than $9 … [Read more...] about AI Debt Risks: Credit Default Swaps Trading Surges as Infrastructure Costs Mount
Mortgage Rates, the 30-Year Treasury and the Next Test of Household Income
The near-term economic picture is fragile. Housing finance is becoming more expensive just as inflation tests the purchasing power of earnings. The next question is whether household income can continue to absorb both pressures. The second monthly report on wages is due next week alongside the Personal Income data, which should confirm the monetary figures from the August … [Read more...] about Mortgage Rates, the 30-Year Treasury and the Next Test of Household Income
How Bonds Work: From Issuance and Auctions to Secondary Markets and Derivatives
How Do Bonds Work? The Complete Lifecycle of a Bond How does a bond begin, who buys it and what happens after issuance? This guide follows bonds from government auctions and corporate underwriting through secondary-market trading, dealer networks, futures, swaps and eventual maturity. A bond begins as a loan. A government, company, municipality or agency needs capital, and … [Read more...] about How Bonds Work: From Issuance and Auctions to Secondary Markets and Derivatives