Industry News
Mortgage Industry News
Today’s Market Color
11/01/2010
Both personal income and spending printed weaker than expectations. With Fed Chairman Bernanke heavily promoting QE2, other central banks are considering their own stimulus packages to prevent their currencies from rallying too much against the dollar, hurting their exports and subsequent economic recovery. Consensus for ADP on Wednesday is +20K, and +60K for Nonfarm Payrolls on Friday. Right now, the futures market is pricing in an 87% chance that the Fed keeps rates between 0% and 0.25% through January 26th, 2011. Currently, the Ten Year yield is at 2.638% (2.63% on Friday) and the 2-10 yield spread is at 223bps, flattening 3bps since Friday morning.
