Kansas City Fed president Jeff Schmid, who does not vote on policy this year, warned that officials should not assume inflation from higher oil prices would prove transitory.
US secretary of state Marco Rubio, speaking to Al Jazeera, said American objectives in Iran would take “weeks, not months” to achieve, suggesting the conflict might remain a live factor for markets into the second half of the year.
What it meant for mortgage desks
For US mortgage desks, the drop in Treasury yields highlighted that markets have begun to see the oil spike less as a pure inflation story and more as a potential drag on growth.
That shift helped pull benchmark yields off their highs, easing immediate pressure on mortgage‑backed security valuations and warehouse funding costs.
However, lower yields on a single day does not guarantee a smoother path for borrowers. Brokers still face clients trying to time volatile markets, lenders ready to withdraw products at short notice, and a Fed that looks in no hurry to deliver the rate cuts many households hope will follow.
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