Industry News
Mortgage Industry News
Portugal Second Bailout Likely
07/06/2011
Treasury prices are edging higher today as European debt concerns continue to produce investor anxiety. Portugal was in the crosshairs yesterday after Moody’s downgraded its rating to junk status and indicated that a second bailout was likely. Elsewhere, The People’s Bank of China raised rates by 25bp to combat rising inflation levels. In US economic news, today’s release of the weekly MBA mortgage applications index showed a -5.2% decline. Refinance activity plunged 9.2% as higher rates and the July 4th holiday cooled demand. On a positive note, purchase applications actually increased by 4.8% as potential buyers used part of the long holiday weekend to house hunt. Lastly, the June Challenger job cuts report showed an 5.3% increase on the heels of last month’s -4.3% decline. Currently, the Ten Year yield is at 3.080% and the 2-10 yield spread is at 266bps, narrowing by 4bps since yesterday morning.
