Industry News
Mortgage Industry News
Consumers Spending More
11/25/2009
In the economic releases this morning, the data showed that the consumer is spending more, durable goods orders are down, and initial and continuing jobless claims dropped sharply. Bonds and equities are mixed post-release; the dollar is lower. The Compass Production Index posted a dramatic spike in originations yesterday--over 3 times the amount of the average of the previous 10 days. The Treasury is scheduled to auction a record amount of 7yr notes today, $32B. Right now, the futures market is pricing in an 84% chance that the Fed keeps rates somewhere between 0% and .25% through March 16th, 2010. Currently, the Ten Year yield is at 3.341% (3.33% yesterday) and the 2-10 yield spread is at 258bps, steepening 1bp since yesterday morning.
