Industry News
Mortgage Industry News
Exports Hit Two-year High
12/10/2010
The US Trade deficit dropped by 13% due to exports hitting a two-year high; China reported record imports and will require banks to increase reserves for the third time this year. Stock futures are pointing higher; mortgages and longer term Treasuries are lower. Right now, the futures market is pricing in a 92% chance that the Fed keeps rates between 0% and 0.25% through March 15th, 2011. Currently, the Ten Year yield is at 3.27% (3.22% yesterday) and the 2-10 yield spread is at 265bps, steepening 3bps since yesterday morning.
