LOUISVILLE, Ky. Aug 15 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.