CPI Week Puts Rates to the Test

Despite another week of geopolitical headlines, the bond market showed surprising resilience. In this week's Master the Markets, host and expert Bill Bodnar explains how the 10-year Treasury recovered from its weekly highs even after renewed tensions between the U.S. and Iran briefly sent oil prices higher.
Bill points to strong 10-year Treasury auction demand as an encouraging sign that investors continue to see value in bonds, reinforcing the old market adage that "the cure for higher rates is higher rates." Still, the technical picture remains critical, with 4.60% on the 10-year Treasury serving as an important resistance level that mortgage professionals should continue monitoring closely.
This week's biggest market mover arrives Tuesday with the release of the Consumer Price Index (CPI), one of the most influential inflation reports for mortgage rates. But the headline event may be Fed Chair Kevin Warsh's semiannual testimony before Congress. Investors will be listening closely for insights into his evolving approach to monetary policy, including changes to inflation metrics, new policy initiatives, and how he plans to reshape the Federal Reserve's communication strategy.