April 4, 2006

Long Term Rates Creep Higher

Mark Whitehouse and Serena Ng:
After stubbornly resisting nearly two years of prodding by the Federal Reserve, long-term interest rates are on the rise, a trend that could eventually slow the nation's expansion.

Yesterday, the yield on the 10-year U.S. Treasury note -- the foundation for long-term interest rates -- rose as high as 4.905%, matching a two-year peak set in May 2004. Some analysts believe the yield is on a run that will take it above 5%.

The upturn, spurred by deepening economic growth in the U.S. and abroad, is pushing up the cost of a widening range of consumer and business loans -- including 30-year mortgages and corporate bonds -- from extraordinarily low levels.
Posted by James Zellmer at April 4, 2006 8:07 AM | Subscribe to this site via RSS:
Posted to Business | Politics