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A fresh jump in oil prices on Thursday lifted five- to 30-year Treasury yields to new multiyear highs in choppy U.S. trading, with the 30-year rising as much as seven basis points to 5.47%, its highest since 2004.
While the Fed move was expected, Chairman Kevin Warsh's rhetoric on inflation drove up market-implied expectations for at least one more increase this year and as many as two more in 2027.
As the AI borrowing spree keeps accelerating, the spillover effect is playing a growing role by taxing the market's ability to absorb so much debt.
A delinquency test requires that excess cash pay down the notes sequentially if the aggregate delinquent loans represent more than 5.0% of the portfolio balance's average loan balance.
Second homes account for 10.1% of the underlying collateral pool, the highest ratio seen in pools all year.
