“Bond Market News and Perspective for Mortgage Professionals”
Treasuries Fall After Obama Says to Extend Tax Cuts for 2 Years, boosting optimism for the economic outlook. UST 10yr yields are back above 3.0% as the 10-year note price declined 1 5/32 yield 3.069% and the 30-year bond was 1 19/32 lower to yield 4.349%. Many investors believed the tax holiday will boost consumer spending and business investments, which outweighed worries about the euro zone’s sovereign debt problems and the likelihood of an interest-rate increase in China. There is a $32 billion in 3 yr note auction today, followed by $21 billion in 10-year notes Wednesday and $13 billion in 30-year bonds Thursday.
Deal Struck on Tax Package. Grand Bargain Includes One-Year Drop in Wage Levy, Estate Tax of 35%. The deal would also extend business tax breaks, current tax rates on capital gains and dividends for two years, and would also maintain protection for middle-class families from the alternative minimum tax.
The Economic Incompetence Of The Political Class. If politicians don’t get serious about fiscal profligacy, markets will.
Mortgage Delinquency Rate Could Fall to 5% in ‘11 from an expected 6.2% at the end of 2010, according to a TransUnion LLC.
