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Mortgage Industry News
Treasury Prices Surging
06/23/2011
Treasury prices are surging higher this morning as yesterday’s FOMC statement and press conference kindled the flight to quality bid. High unemployment and the ailing US housing market were sighted as two of the main culprits weighing heavily on the expected US economic recovery. In response, global equity markets traded lower overnight as investors move toward the relative safety of fixed income. In US economic news, the weekly jobless claims report produced worse than expected results, which has fueled the modest treasury rally that was already in progress. Meanwhile, the last installment of this week’s US housing data comes in the form of the May new home sales report (10AM) and, not surprisingly, it is expected to show further decay. Currently, the Ten Year yield is at 2.914% and the 2-10 yield spread is at 257bps, flattening slightly by 2bps since yesterday morning.
