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Mortgage Industry News
China Boosts Reserve Requirements
10/12/2010
In an effort to cool their economy, China boosted reserve requirements for six lenders. Coupled with fears that US earnings will disappoint this week, stock futures are lower while mortgages and Treasuries are up. 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 2.37% (2.38% on Friday) and the 2-10 yield spread is at 202bps, flattening 1bp since Friday morning.
