Chart of the Week: US Treasury Bonds

About this chart: This is the weekly chart of the 10-Year T-Bond. This is the bond that home loan mortgage lenders use to set rates. This is also the benchmark for most farm and commercial real estate mortgage rates. This chart has an inverse relationship to interest costs. When the chart moves lower, long-term borrowing costs move higher.  This chart shows T-bonds rallying up to over 140 in March 2020, and again in July 2020 (when home mortgage rates dropped to the lowest price ever). This week, bonds fell below support at 136, dropping to the lowest price since early 2020. The next support on the chart is at 132. [Chart source: DTN/ProphetX]

What this means for you: The fear of inflation is driving bond yields higher. The cost of a 30-year home mortgage is now 0.5% higher than late last year.