Industry News
Mortgage Industry News
Italy’s Credit Rating Falls to Negative
05/23/2011
Italy’s credit-rating was downgraded by Standard and Poor’s from stable to negative, sending the euro lower against most other currencies. Data released this morning also showed that China’s pace of manufacturing expansion has slowed. Commodities and equities are lower; Treasuries and mortgages are up in early trading. Right now, the futures market is pricing in about an 83% chance that the Fed keeps rates between 0% and 0.25% through September 20th, 2011. Currently, the Ten Year yield is at 3.11% (3.16% on Friday) and the 2-10 yield spread is at 260bps, flattening 3bps since Friday morning.
