Fed's Bullard - housing strong enough to overcome higher yields

LOUISVILLE, Ky. Thu Aug 15, 2013 7:19pm IST

LOUISVILLE, Ky. Aug 15 (Reuters) - Long-term U.S. borrowing costs remain low despite a recent spike in U.S. Treasury bond yields and the U.S. housing market should be able to withstand the accompanying run-up in mortgage rates, a senior Federal Reserve official said on Thursday.

"I think it is a concern, but I think the level of yields now is still quite low by historical standards," St. Louis Fed President James Bullard told reporters after benchmark 10-year U.S. government note yields hit a two-year high.

"I also think that momentum in housing is stronger than any effects that are going to come from higher yields, at least for now," he told reporters after addressing a breakfast event hosted by the St. Louis Fed.

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