Industry News
Mortgage Industry News
Successful Spanish & Italian Debt Auctions
01/12/2012
Treasury prices were modestly lower this morning as successful Spanish and Italian debt auctions helped ease investors’ anxiety. After a slow start to the week, the economic calendar heats up today with Dec retail sales and the weekly jobless claims reports. Retail sales, which include holiday sales, were below expectations as sales (ex autos) unexpectedly dropped -0.1% vs expectations of a 0.3% increase. The weekly jobless claims were equally disappointing as initial and continuing claims both increased more than forecasted. Not surprisingly, treasury prices have reversed course and moved into positive territory in response to the data. Currently, the 10 year yield is at 1.900% (1.939% Wednesday) and the 2-10 yield spread is at 168bps, 2 bps flatter since yesterday morning.
