Industry News
Mortgage Industry News
Economy Barely Expanding
12/06/2010
On "60 Minutes" last night, Fed Chairman Bernanke said the economy is barely expanding, and at the current pace, it will be several years before employment is back on track. Bond purchases may expand beyond the $600B announced; Treasuries and mortgages are higher in early trading. Right now, the futures market is pricing in a 90% chance that the Fed keeps rates between 0% and 0.25% through March 15th, 2011. Currently, the Ten Year yield is at 2.95% (2.91% on Friday) and the 2-10 yield spread is at 250bps, steepening 5bps since Friday morning.
