Industry News
Mortgage Industry News
Mortgage Market News
02/22/2011
Escalation of the violence in Libya has US Treasuries and oil trading higher. An ECB council member said that officials may toughen their language with regard to inflation next week, showing a willingness to raise rates in the coming months. The Treasury is scheduled to auction $35B of 2yr notes today, $35B of 5yr notes tomorrow, and $29B of 7yr notes on Thursday. Right now, the futures market is pricing in an 87% chance that the Fed keeps rates between 0% and 0.25% through April 27th, 2011. Currently, the Ten Year yield is at 3.53% (3.61% on Friday) and the 2-10 yield spread is at 280bps, flattening 1bp since Friday morning.
