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Mortgage Industry News
Mis-entered Trade Causes DOW Sell-off
05/07/2010
Nonfarm payrolls printed much higher than expectations, +290K vs. +190K consensus; the unemployment rate jumped up .2% to 9.9%; U6 is up to 17.1%. The SEC will conduct an investigation as to what happened yesterday with a supposed mis-entered trade and the subsequent almost 1,000 point DOW sell-off and immediate 650 point rally from the low. Right now, the futures market is pricing in a 67% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.488% (3.56% yesterday) and the 2-10 yield spread is at 263bps, flattening 7bps since yesterday morning.
