Industry News
Mortgage Industry News
Bonds Up Slightly
08/31/2009
Due to fears that equity prices have outpaced actual economic fundamentals, global stocks and US futures are down; bonds are up slightly. There will be several labor-related pieces of data this week: ADP on Wednesday (-250K consensus), Initial Jobless Claims on Thursday (560K), and Nonfarm Payroll on Friday (-230K). Right now, the futures market is pricing in a 97% chance that the Fed keeps rates somewhere between 0% and .25% through December 16th, 2009. Currently, the Ten Year yield is at 3.45% (3.52% on Friday) and the 2-10 yield spread is at 245bps, steepening 1bp since Friday morning.
