Thursday, June 20, 2013
Interest rates have jogged up in recent months and some people are getting apocalyptic about it. The above chart shows thirty year mortgage rates - the little jag up at the very end is the feature of interest. Below is 10 year US government debt.
This is no big deal.
Even dodgy corporate bonds are barely up from their record lows:
Could this be a turning point, the beginning of a return to more normal credit conditions? That's conceivable, and it would be fine. It could also just be noise.