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House Passes Health-care Legislation
03/22/2010
The House passed the health-care legislation yesterday by a vote of 219-212. 32 million uninsured will receive benefits once President Obama signs the bill into law. Nancy Pelosi expects the bill to save Americans $1.3T. According to the bond market, it is becoming increasingly more likely that the US will lose its AAA rating as there are several corporations who are able to borrow at sub-Treasury yields, indicating that Treasuries are considered more risky. Right now, the futures market is pricing in a 74% chance that the Fed keeps rates at .25% through August 10th, 2010. Currently, the Ten Year yield is at 3.661% (3.70% on Friday) and the 2-10 yield spread is at 272bps, steepening 1bp since Friday morning.
