Industry News
Mortgage Industry News
Stocks Rally
12/18/2009
German business confidence printed at a 17-month high, causing European equities and US stock futures to rally; bonds are lower. PIMCO's Bill Gross has cut government debt holdings and increased cash his cash position to the most in a year, signaling that PIMCO may see rates on the long end of the curve starting to rise. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates somewhere between 0% and .25% through April 28th, 2010. Currently, the Ten Year yield is at 3.51%(3.52% yesterday) and the 2-10 yield spread is at 272bps, flattening 2bps since yesterday morning.
