Industry News
Mortgage Industry News
Today's Market Color
09/30/2009
ADP printed worse than expectations, -254K vs. -200K consensus, showing more job losses than anticipated in the private sector. With the main difference between the ADP and Nonfarm Payrolls being the number of government jobs gained or lost, Friday’s current NFP projection of -180K may be revised downwards. PIMCo’s Bill Gross foresees a “new normal” of equity returns of 5% annually as consumers curb spending and increase saving. Right now, the futures market is pricing in an 83% chance that the Fed keeps rates somewhere between 0% and .25% through January 27th, 2010. Currently, the Ten Year yield is at 3.320% (3.30% yesterday) and the 2-10 yield spread is at 229bps, flattening 1bp since yesterday morning.
