Will the treasury yields keep deflating?

At our company we saw interest rates drop .5% this week as our rates are based on the 5 year treasury, which was pushed down to 3.6% this week. 

Capital has been tight because 10 year treasuries have been hovering around 4% the past few years.

With the move down in the treasury market, has anyone priced out DSCR loans? 

The key features that make it more efficient that are hard to replicate else where is that the interest is simple interest similar to commercial loans (rate/365Xbalance daily), there’s a 20 day grace period before the prior period’s accrued interest is billed/added to your balance outstanding so you can keep chipping away at your daily principal balance with your deposits from days 1-19th each month before prior month’s interest is even billed (on the 20th/21st usually).The current CMT or constant maturity treasury index is less volatile than prime index that most heloc’s are based on (most bank commercial lines are based on 3-5 year FHLB + 225-275 BPS or 2.25-2.75% margin).

In the last week the 5Y treasury yields deflated 50bps.

Treasury that would allow federally chartered banks to move onto their turf."

Mortgage rates are driven by the capital market and basically follow the bond market, specifically 10 year US treasury with a premium, historically about 1,7%.Yesterday the 10yT fell to 3.9% and I have seen 5.99% 30y fixed rates with a local bank in here Milwaukee (that is still an inflated 2% premium), so 5.7% would be historically normal based on a 1.7% premium, even without the 10YT going any lower.Here is why.If the 10yT offers lower returns, more investors want to buy mortgage-backed securities instead to get higher returns (about 1.7% higher), as a consequence lowering the returns on those as well.

It would definitely be much easier (and probably about the same on total cost) to just cashout refi what funds you might need from you STRs and then park then cash in MMAs or 30 day treasuries until you need them.

Don't look now but the 10 Year US Treasury is dropping like a rock over the past week currently hovering below 4.1% ahead of the FED Rate decision.