Industry News
Mortgage Industry News
Fight to Address Greece’s Debt
09/19/2011
The flight to quality bid resumed today as European finance ministers were unsuccessful in their attempts to address Greece’s debt situation. Treasury prices are rallying as investor’s confidence is fading that Europe can save Greece from default. In terms of economic data, this week’s calendar is heavy on US housing statistics. It begins today with the September NAHB index, which is expected to remain unchanged from August’s pessimistic level of 15. Today’s report is followed by Tuesday’s housing starts and building permits reports, Wednesday’s existing home sales report and finally Thursday’s housing price index. However, these reports will likely take a backseat to Wednesday’s FOMC rate decision. The Fed is expected to leave rates unchanged but investors will be looking for any clues to a possible shift in policy. Currently, the 10yr yield is at 1.97% (2.106% Friday) and the 2-10 yield spread is at 181 bps, flatter by 10 bps since Friday morning.
