New government data on retail sales had the stock market lower and the benchmark Treasury yield trading in record territory. Treasury market activity points to a new record-low for mortgage rates.
The Department of Commerce said Monday that seasonally adjusted estimates of U.S. retail and food services sales for June were down 0.5 percent from May.
It was the third consecutive month that the key indicator was lower.
The news — along with a report of weak economic activity in China, possible losses for Spanish bond holders and a dismal global forecast from the International Monetary Fund — had the Dow Jones Industrial Average down more than 60 points in early trading.
As investors sought the perceived safe haven of U.S. Treasury bonds, the yield on the 10-year Treasury fell to around 1.45 percent.
The 10-year yield closed at 1.52 percent on Friday, according to data from the Department of the Treasury.
Based on Federal Reserve Board data back to 1962, the lowest level on record for the 10-year Treasury yield was 1.47 percent set on June 1.
Freddie Mac reported that the average 30-year fixed-rate mortgage fell to 3.56 percent in its Primary Mortgage Market Survey for the week ended July 12. During the period when Freddie surveyed 125 lenders for the latest report, the 10-year yield averaged 1.53 percent.
Today’s 10-year Treasury movement suggests that the 30-mortgage could fall below 3.50 percent in this week’s survey.
