Industry News
Mortgage Industry News
Election Will Influence MBS Markets
11/02/2010
The big story today is the election. As the results become clearer during the session and into the evening, they will influence MBS markets. Republicans are expected to gain ground. The Dow is up 100 points. The FOMC meeting announcement will be released tomorrow around 2:15 et.
Australia and India raised interest rates to cool inflation. The FOMC begins their two day meeting today and polled economists believe that they will announce a plan to by at least $500B of long-term securities. The dollar is weaker. Consensus for ADP tomorrow is +20K, and +60K for Nonfarm Payrolls on Friday. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates between 0% and 0.25% through January 26th, 2011. Currently, the Ten Year yield is at 2.61% (2.57% yesterday) and the 2-10 yield spread is at 227bps, steepening 4bps since yesterday morning.
