Industry News
Mortgage Industry News
EU Close to Plan to Resolve Debt Crisis
10/12/2011
Treasury prices are under pressure once again today as the EU is reportedly close to consensus on a plan to help resolve the debt crisis. Treasuries have been punished over the last couple weeks as the yield on the 10yr is over 50bps higher than the low of 1.71 posted on 9/22. In economic news, today’s release of the MBA mortgage applications index showed a modest rebound of +1.3% versus the prior week’s level of -4.3%. Refinances increased 1.3%, while purchases increased a slightly smaller 1.1%. Meanwhile, investors will be closely watching today’s release of the FOMC meeting minutes to glean any additional information on the potential Fed policy shifts. Currently, the 10yr yield is at 2.215% (2.148% Tuesday) and the 2-10 yield spread is at 190bps, steeper by 6 bps since yesterday morning.
