Industry News
Mortgage Industry News
Unexpected Drop In Jobless Claims
10/28/2010
Bonds are trading higher this morning despite an unexpected drop in Initial Jobless Claims. For the week ending October 23rd, Initial Claims decreased by 21,000 to 434,000 while Continuing Claims also printed lower than analyst’s expectations. Right now, the futures market is pricing in an 87% chance that the Fed keeps rates between 0% and 0.25% through January 26th, 2011. Currently, the Ten Year yield is at 2.68% (2.69% yesterday) and the 2-10 yield spread is at 230bps, steepening 2bps since yesterday morning.
