So many ramifications
1) buyers who got pre-approved a couple of months ago likely might not be approved today, so they won't be able to close
2) potential homedebtors will see their expected monthly payments soar, which may lead them to rethink closing
3) ARM resets will be even more painful
4) Foreigners may sell bonds even faster, making interest rates go up even faster
5) Home prices fall even faster so that the dummies who buy based on monthly payment (vs. asset price) can afford the same monthly payment
6) Renting is even cheaper today vs. buying or owning (with an ARM)
7) "Analysts" were wrong yet again
8) China finally realizes they've been playing a fools game, and sitting on $1 Trillion of worthless paper is not a good idea
What'd I miss?
Treasuries plunged on Thursday as fears of tighter monetary policy globally fueled a break in yields above 5 percent, unleashing another round of heavy selling.
Yields across all maturities rose to or above 5 percent for the first time since July and benchmark rates posted their biggest one-day spike in seven months.
"We are being overwhelmed by mortgage-related selling," said Thomas di Galoma, head of Treasury trading at Jefferies & Co. in New York.
