EYE ON THE ECONOMY: Why interest rates keep changing

One of the beneficiaries of last year’s labor market weakness was a decline in the 10-year Treasury yield.

When the economy begins to weaken, investors often shift toward the safety of U.S. Treasury securities. As demand for Treasuries rises, their prices increase and yields decline. Because the 10-year Treasury yield heavily influences mortgage rates and many consumer loans, lower Treasury yields are often followed by lower borrowing costs for households.

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Uric Dufrene is the Sanders Chair in Business at Indiana University Southeast.

EYE ON THE ECONOMY: Why interest rates keep changing | Opinion

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