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Mortgage Industry News
Senate Passes Regulation of Financial Industry
05/21/2010
The Senate passed the most sweeping, comprehensive regulation of the financial industry since the Great Depression; after reconciliation with the House bill, curbs will likely be put on proprietary trading and restraints will be imposed on derivative trading. The passage of this bill, coupled with more fears from the European debt crisis, has equities moving lower and bonds higher. Right now, the futures market is pricing in a 71% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.216% (has dropped 87bps in yield in the last month and a half) and the 2-10 yield spread is at 243bps, flattening 11bps since yesterday morning.
