After a difficult week for the bond market, all eyes now turn to the Federal Reserve. In this week's Master the Markets, host and expert Bill Bodnar explains why mortgage professionals should prepare for one of the most important weeks of the quarter as Fed Chair Kevin Warsh presides over his second Federal Reserve meeting.
Last week saw the 10-year Treasury climb to its highest level in more than a year, while mortgage-backed securities fell to their lowest price levels of 2026. There was some welcome relief by week's end as oil prices retreated after briefly surging from around $68 to nearly $95 per barrel, helping ease some pressure on the bond market.
This week brings a packed calendar. Markets will be watching Core PCE inflation, several important Treasury auctions, and any updates from Warsh regarding quantitative tightening and the Federal Reserve's ongoing policy initiatives. Bill also highlights the growing challenge posed by the nation's rising debt and deficits, noting that government borrowing continues at an unsustainable pace—another factor influencing long-term interest rates.
