Industry News
Mortgage Industry News
Today’s Market Color
01/10/2011
European governments will auction off $43B in bonds this week which has rekindled fears about the ability for individual nations to pay the money back; credit-default swaps on Portugal have climbed to a new high, 547bps. Global equities are down, Treasuries and mortgages are higher in early trading. The Treasury is scheduled to auction $32B of 3yr notes tomorrow, $21B of 10yr notes on Wednesday, and $13B of 30yr bonds on Thursday. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates between 0% and 0.25% through April 27th, 2011. Currently, the Ten Year yield is at 3.303% (3.39% on Friday) and the 2-10 yield spread is at 272bps, flattening 1bp since Friday morning.
