Industry News
Mortgage Industry News
AIG and Goverment Come to Agreement
09/30/2010
Jobless claims data was mixed with the current week’s numbers printing better than expectations while the previous week’s figures were revised upwards. AIG and the US government have come to an agreement that the $49.1B of preferred stock will be converted to 1.66B shares of common stock and sold in the open market. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates between 0% and 0.25% through January 26th, 2011. Currently, the Ten Year yield is at 2.52% (2.48% yesterday) and the 2-10 yield spread is at 205bps, steepening 1bp since yesterday morning.
MBS prices are unchanged, far above 9:45 et pricing of -10/32. The Dow has dropped from up nearly 100 points to down nearly 100 points, lifting MBS markets from the lows.
