Industry News
Mortgage Industry News
Treasury Prices Rally On Twist Announcement
09/22/2011
Treasury prices are continuing to rally this morning after yesterday’s $400bln twist announcement from the FOMC. Investors are clearly worried as the flight to quality bid has pushed the 10yr to a record low yield of 1.76% overnight. Mortgage prices continue to hit new highs with front month GNMA 3’s are essentially pricing above par for the first time. This morning’s release of the weekly jobless claims report showed slightly higher than expected claims on both the initial and continuing claims reports. Later this morning the fourth and last installment of US housing data is scheduled to be released. The July FHFA Price Index is expected to increase +0.1% after June’s surprising 0.9% increase. Currently, the 10yr yield is at 1.760% (1.938% Wednesday) and the 2-10 yield spread is at 167 bps, flatter by 10bps since yesterday morning.
