Industry News
Mortgage Industry News
FOMC Two-day Meeting Starts Today
09/22/2009
The FOMC begins their two-day meeting today. With their announcement scheduled for tomorrow afternoon, market participants are curious whether the Fed will address exit strategies from the different markets that they are involved in. There is a record $43B 2yr note auction slated for today; 5yrs are tomorrow, 7yrs on Thursday. Right now, the futures market is pricing in a 94% chance that the Fed keeps rates somewhere between 0% and .25% through December 16th, 2009. Currently, the Ten Year yield is at 3.46% (3.43% yesterday) and the 2-10 yield spread is at 250bps, steepening 5bps since yesterday morning.
