Industry News
Mortgage Industry News
Congress Extends Tax Cuts
12/17/2010
Bonds are rallying again today on a light day for economic data. Moody’s Investor Service lowered Ireland’s credit rating 5 levels to Baa1 and suggested that further downgrades are possible in the future. Congress extended the Bush-era tax cuts yesterday and President Obama will sign the bill into law later today. Right now, the futures market is pricing in an 81% chance that the Fed keeps rates between 0% and 0.25% through April 27th, 2011. Currently, the Ten Year yield is at 3.382% (3.52% yesterday) and the 2-10 yield spread is at 275bps, narrowing 9bps since yesterday morning.
