Industry News
Mortgage Industry News
US Manufacturing Strong
01/05/2010
Yesterday, US manufacturing showed the strongest expansion in over three years; factory orders are due out later this morning. After selling off in December (10yr rate jumped 64bps), the 10yr note has caught a bid in the first few trading days of the month on speculation that the Fed will leave rates low for an extended period of time. Right now, the futures market is pricing in a 79% chance that the Fed keeps rates somewhere between 0% and .25% through April 28th, 2010. Currently, the Ten Year yield is at 3.79%(3.84% yesterday) and the 2-10 yield spread is at 276bps, steepening 2bps since yesterday morning.
