Industry News
Mortgage Industry News
Japan Raises Nuclear Crisis
04/12/2011
Japan has raised the nuclear crisis severity from 5 to 7, matching the levels seen in the 1986 Chernobyl disaster; the radius for people being cleared out has been doubled from 12 to 24 miles. Stocks are down, while Treasuries and mortgages are rallying. The Treasury is scheduled to auction $32B of 3yr notes today, $21B of 10yr notes tomorrow, and $13B of 30yr notes on Thursday. Right now, the futures market is pricing in about a 92% chance that the Fed keeps rates between 0% and 0.25% through August 9th, 2011. Currently, the Ten Year yield is at 3.52% (3.59% yesterday) and the 2-10 yield spread is at 273bps, flattening 5bp since yesterday morning.
