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China Refrains From Raising Rates
12/13/2010
China refrained from raising interest rates, sending stocks and commodities higher; Treasuries and mortgages are down. The FOMC Rate decision is due out tomorrow. Right now, the futures market is pricing in a 92% chance that the Fed keeps rates between 0% and 0.25% through March 15th, 2011. Currently, the Ten Year yield is at 3.36% (3.27% on Friday) and the 2-10 yield spread is at 272bps, steepening 7bps since Friday morning.





