Industry News
Mortgage Industry News
Today’s Market Color
03/22/2011
Yesterday, the US Treasury announced that they would start unwinding their $142B Agency MBS position at a pace of about $10B per month; TBA’s instantly gapped down around 3/8 of a point when the story broke. UK inflation printed at 4.4%, more than twice as much as the 2% mandate, bringing increased speculation that the Bank of England will have to raise rates soon. Right now, the futures market is pricing in about a 93% chance that the Fed keeps rates between 0% and 0.25% through August 9th, 2011. Currently, the Ten Year yield is at 3.34% (3.30% yesterday) and the 2-10 yield spread is at 269bps, steepening 1bp since yesterday morning.
