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Mortgage Industry News
Bonds Rallying Third Day In A Row
12/20/2010
Bonds are rallying for the third day in a row on another light day for economic data. There are concerns that France’s AAA credit rating may be at risk following Moody’s Investor Service lowering of Ireland’s credit rating to Baa1 last Friday. Right now, the futures market is pricing in an 81% chance that the Fed keeps rates between 0% and 0.25% through April 27th, 2011. Currently, the Ten Year yield is at 3.28% (3.41% yesterday) and the 2-10 yield spread is at 269bps, narrowing 6bps since yesterday morning.
