It is Frustrating Being a Real Estate Bear Sometimes

The rise in the yield on the 10-year note from about 4.00% to 4.60% in April looked like the first nail on the coffin for the over-heated real estate market. So it’s been frustrating to watch, in the past couple of weeks, 10-year yields drift back into the 4.30% to 4.40% range. Those that are optimistic about seeing higher yields going forward have blamed the latest bond rally on short-covering. Apparently, so many people are short treasury bonds that a lot of covering (buying back) of bonds is occurring, halting the price drop.