Industry News
Mortgage Industry News
CPI Increases More than Projected
02/17/2011
CPI increased more than projected due to higher food and fuel costs; Initial and continuing jobless claims both jumped more than expected. Stock futures are mildly down after the data releases while Treasuries and mortgages are higher. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates between 0% and 0.25% through April 27th, 2011. Currently, the Ten Year yield is at 3.58% (3.61% yesterday) and the 2-10 yield spread is at 275bps, flattening 1bp since yesterday morning.
