I have noticed a lot of media coverage about the rising treasury yields. The situation is portrayed as something the Federal Reserve policy makers do not want. In reality, itâs quite the opposite. Since the Federal Reserve is the sole provider of mortgage credit in the United States now, they have total control over mortgage rates. The rise in treasury rates is driving mortgage rates higher temporarily due to hedging pressures by banks. Once the treasury yields reach their normalized target, mortgage rates will fall quickly. Continued: in next thread.