Treasury Yield Curve Flattens as 10-Year Yield Falls, Short-Term Yields Stay Put: Fed’s Pivot to Wait-and-See in Inflationary Times. But Mortgage Rates Stay Near 7%

By Wolf Richter for WOLF STREET

The 10-year Treasury yield dropped by 8 basis points on Friday, to 4.43%, perhaps inspired by iffy feelings elsewhere as stocks careened lower and investors sought safety.

Since January 10, the 10-year yield has now given up 34 basis points of that 114-basis-point spike that it had experienced from mid-September 2024, just before the Fed’s first cut, through January 10, 2025. Over this period of surging long-term yields, the Fed had cut its short-term policy rates by 100 basis points.