Industry News
Mortgage Industry News
Retail Sales Unexpectedly Drop
06/11/2010
Retail sales unexpectedly dropped in May as consumers boosted savings amidst slowing employment and a declining stock market. Stocks are lower, bonds are higher in early trading. In credit markets, the yield spread between European corporate debt and US corporate debt is the widest on record, signaling that investors are not confident that European lawmakers can tame their financial crisis. Right now, the futures market is pricing in a 77% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.251% (3.22% yesterday) and the 2-10 yield spread is at 252bps, steepening 4bps since yesterday morning.
