Industry News
Mortgage Industry News
Central Banks To Lower Dollar Swap Rates
11/30/2011
It been a busy morning...treasury prices were mostly unchanged overnight but moved lower this morning after a coordinated plan by central banks to lower dollar swap rates by 50bps was announced. Soon after this release, a stronger than expected Nov US ADP employment report (+206k actual vs +130k expected) added additional pressure to treasury prices. In other news, China reduced their reserve ratio for bank lending by 50bps and the latest release of the MBA mortgage applications index showed a -11.7% drop. Lastly, 3rd Qtr US nonfarm productivity posted a smaller than expected increase of +2.3% vs +2.6% estimate and unit labor costs dipped a larger than expected -2.5% vs a -2.2%. Currently, the 10yr yield is at 2.077% (1.988% Tuesday) and the 2-10 yield spread is at 180bps, flatter by 7bps since yesterday morning.
