Bond yields barely wobble despite Fed rate cut

There’s no prospect, either, of a return to the huge discounts seen in the mortgage market during the COVID-19 pandemic, when homeowners and buyers rushed to take advantage of much lower rates amid wider economic turmoil.

Powell referenced that so-called “lock-in” effect in his Wednesday remarks, suggesting that it’s weighing against the housing market’s performance as homeowners hold onto their ultra-low pandemic-era rates instead of moving and having to give them up.

He also indicated the recent weeks-long government shutdown complicated the Fed’s December move, and suggested a clearer run of economic data is needed before its next announcement in January.

Chair Powell reads opening statement at the #FOMC press conference on December 10, 2025: https://t.co/eFLcTWG9qT

— Federal Reserve (@federalreserve) December 10, 2025

Cohn said financial markets are also likely taking a cautious approach as they await further employment and inflation data to accurately weigh how the US economy is holding up. “There hasn’t been enough said or done to move or sway the bond market in any sort of meaningful way,” she said.

“I think we’re still very much [in a holding pattern] until we get more data. It’s basically going back to data watching. There’s just not enough actual, current data to move the markets one way or the other.”