Industry News
Mortgage Industry News
Producer Prices Print Higher
02/18/2010
Producer prices printed higher than expectations; initial and continuing claims were worse than consensus. The combination of the two numbers has pushed equity futures down and bonds slightly up. In yesterday's FOMC minutes, the Fed discussed starting sales of assets in the "near future", which sent treasuries sharply lower. Right now, the futures market is pricing in an 83% chance that the Fed keeps rates somewhere between 0% and .25% through June 23rd, 2010. Currently, the Ten Year yield is at 3.797% (3.70% yesterday) and the 2-10 yield spread is at 288bps, steepening 1bp since yesterday morning.
