Industry News
Mortgage Industry News
Fed Announces Extension
09/24/2009
Yesterday, the Fed announced that they would extend the MBS purchasing program for 3 months, but did not increase that amount that would be bought from the original $1.25T. The headline initial and continuing jobless claims printed better than expectations in the release this morning. The G20 meets today and there is a $29B 7yr note auction at 1PM. Right now, the futures market is pricing in a 82% chance that the Fed keeps rates somewhere between 0% and .25% through January 27th, 2010. Currently, the Ten Year yield is at 3.43% (3.49% yesterday) and the 2-10 yield spread is at 245bps, steepening 1bp since yesterday morning.
