U.S. bond prices fell Wednesday on violence in Libya. An auction of $35 billion in five-year notes met with little demand, while 10-year Treasury prices fell 22 cents per $100 invested. Stocks also declined as a result of the Libyan instability.
U.S. mortgage rates have grown for five straight weeks, in the last week hitting their highest levels in seven months. Ten-year Treasury note yields have been climbing on inflation concerns, driving the higher rates.
In a welcome sign of investor confidence in an economic recovery, U.S. interest rates grew for the third day in a row as people moved funds from bonds to stocks. But will higher interest rates slow the housing market?