实在搞不明白，利率怎么 break down

thyme1

TREASURIES SURGE, STOCKS SLIP:

Stocks declined with the S&P 500 closing modestly lower from its all-time high. But Treasuries had a huge day as reflected by tumbling yields.

First, the scoreboard:
•Dow: 16,658.22 (-42.3, -0.25%)
•S&P 500: 1,912.56 (-2.1, -0.1%)
•Nasdaq: 4,231.89 (-12, -0.3%)


• The yield on U.S. 10-year Treasury notes continued to tumble, falling to 2.44%, its lowest level of 2014. Regarding the move in Treasury yields, Rich Barry said, "the current happenings in the U.S. Treasury market, which [are] a total head-scratcher. Shockingly, the 10-year U.S. Treasury Note is exploding to the upside; dropping the yield to a new 10-month low of 2.448%. Flight to quality?! Fear trade?! We did some digging on this one in an attempt to find a catalyst. One potential 'fear factor' candidate we dug up was an article that compared the current state of the housing market in China to the Titanic. (You never want to be compared to the Titanic.) Here is a quick blurb: "Pan Shiyi, CEO of Beijing's biggest property developer SOHO China, said that China's property market is going to hit an iceberg just like the Titanic, Yicai.com reported on Sunday."

•The economic calendar was light, with the Mortgage Bankers Association reporting U.S. mortgage applications fell 1.2% for the week ending May 23. Brean Capital said in a note to investors, "Both refinancing and purchase activity was down last week ahead of the holiday weekend.  Primary rates have not fully captured the rally in secondary rates as the primary-to-secondary spread is now approaching 100bp. Look for this spread to widen further in an extended rally as the 4.0% coupon begins to move into the refinancing window.  This is because capacity constraints may soon come into play as originators have greatly reduced headcount over the past three quarters. We still believe that mortgage rates need to fall below 4.00% to have a meaningful impact on refinancing activity."