Industry News
Mortgage Industry News
US Retail Sales Jump
02/16/2010
US Retail Sales jumped more than expected, the third gain in four months. China increased reserve requirements for the second time in a month as loan growth continued to accelerate. After Fannie and Freddie announced that they will be buying delinquent loans, spreads between FN and FG MBS and the 10yr treasury bond are the tightest levels in 17 years. Right now, the futures market is pricing in an 89% chance that the Fed keeps rates somewhere between 0% and .25% through June 23rd, 2010. Currently, the Ten Year yield is at 3.687% (3.72% yesterday) and the 2-10 yield spread is at 284bps, steepening 1bp since yesterday morning.
