Treasury Yields Ease as Fed Reassures on Inflation Fight

The US Treasury yields have eased back from their highs following the Federal Reserve's commitment to fighting inflation, providing some relief for financial markets. The Fed's decision to prioritize inflation control has reassured investors, causing yields to pull back from recent highs.

One area of concern is the potential impact on mortgage rates, which are hovering just below 7% again. This could have far-reaching consequences for new home and refinance borrowers as well as the housing industry at large.

In other economic news, US initial jobless claims fell by more than expected last week, with 1.58 million people now on benefits. Housing starts also slowed to their slowest pace since 2019, while building consent levels remained low.