Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojktVital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1295.7 | 10.6 | 0.82% |
| Eurostoxx Index | 2128.5 | 41.2 | 1.97% |
| Oil (WTI) | 85.15 | 0.9 | 1.02% |
| LIBOR | 0.468 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 82.56 | -0.265 | -0.32% |
| 10 Year Govt Bond Yield | 1.59% | 0.01% | |
| RPX Composite Real Estate Index | 178.1 | 0.6 |
S&P futures are higher this morning on hopes of further stimulus in Europe. The ECB left interest rates unchanged. The world seems to be backing away from the ledge a little, selling government bonds and taking more risk. Mortgage rates moved lower only grudgingly last week, so we should expect them to stay more or less stable as the 10-year yield backs up. Nonfarm productivity came in lower than expected, as did unit labor costs. The Fed’s Beige Book will be released mid-afternoon.
CoreLogic’s April Home Price Index showed a year-over-year gain of about 1%. Excluding distressed sales, they rose almost 2%. They also introduced a new metric – the Pending Home Price Index – which indicates the trend in prices. This month, the Pending HPI predicts another 2% from April to May. Month-on-month increases are normal seasonal behavior, but year on year increases are more a sign that prices are bottoming.
Clear Capital is reporting more or less the same thing in its June Home Data Index Market Report. It notes that national home prices grew on both a quarterly and yearly basis for the first time since August 2010. Dr Alex Villacorta, Director of Research said: “While gains in national home prices over the quarter and year were minimal in May, there are encouraging trends continuing to play out and gaining momentum beneath the surface. Strength in REO-only price trends as well as some early indications of price gains spreading from low tier sections to the mid, and higher priced homes is helping confirm that the country continues to make progress on its recovery, and we are expecting to see improvements extend of the next several months.” RTWT.
Given that the mortgage market more or less IS Fannie, Fred, and Ginnie the question now is what to do with them. The Community Mortgage Lenders Association has sent a white paper to the government recommending that we reduce the GSE’s involvement in the secondary market to around 33% and that there be an explicit backstop fee paid to the government.
Filed under: Morning Report |
All Things in Moderation 
Pardon me sir, but your short covering rally is here to see you
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“Having a wonderful time, I wish you were here”
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“Given that the mortgage market more or less IS Fannie, Fred, and Ginnie the question now is what to do with them. The Community Mortgage Lenders Association has sent a white paper to the government recommending that we reduce the GSE’s involvement in the secondary market to around 33% and that there be an explicit backstop fee paid to the government. ”
I’d still prefer that any government housing assistance be done explicitly through the FHA and thus on budget. I can’t see a valid reason to have Fannie, Freddie and the FHA. Mortgage/Housing support by the Federal government should be consolidated to one agency.
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scott:
Today is more like this:
1999 by Prince
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banned:
Today is more like this:
The primary thing to be heard on a bond desk today is “Sell! Sell! Get back in there and sell!”
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John/Banned
Are you having an easier time of posting today? I think we should set you up as an author or whatever and then you’ll have access to more of the site, such as commenting from the comments page. Trust me, you’ll be glad you did.
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I am short Treasuries for the last week, which means that we are probably only days away from a new record low in the 10 year. Why do I do this to myself?
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banned:
I am short Treasuries for the last week
10 yr yield up 16 bps in last 2 days. You should be laughing>
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lms:
Not sure what happened last night. Never happened to me before. Had 4 posts in a row not appear.
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Martin Wolf in the FT assembles the reasons why one appropriate response to the Eurocrisis is – PANIC!
http://link.ft.com/r/A1TNOO/C48IA9/D49DM1/JETXQA/JE79DH/QR/h?a1=2012&a2=6&a3=6
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Good interview with George Soros in Der Speigel:
http://www.georgesoros.com/articles-essays/entry/interview_with_george_soros_angela_merkel_is_leading_europe_in_the_wrong_di/
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“bannedagain5446, on June 6, 2012 at 10:31 am said:
I am short Treasuries for the last week, which means that we are probably only days away from a new record low in the 10 year. Why do I do this to myself?”
I believe you previously stated your investing philosophy as “No Guts, No Glory” when I recommended to Rukidding the idea of buying blue chip stocks that paid dividends at 5% or so.
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scott:
I am for today, but you know my interest rate betting record is abysmal
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banend:
but you know my interest rate betting record is abysmal
Get out by Friday.
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However if we alll get out of this alive, remember what I told you about commodities.
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stand by for the beige book in 10 minutes
this might hurt a little!
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moderate growth, no fuel for the Fed to ease it would seem.
Who the hell knows what comes next?
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Is it my imagination or does ATIM close up shop about 1- 2 PM most days?
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banned:
Maybe. But sometimes you get threads like the Morning Reports from 6/1 and 6/5. Then again, some of us don’t get back to the computer for personal use until the Stanley Cup is on TV (go Devils — I want to see more hockey!).
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Gary Johnson on the Daily Show last night:
http://www.thedailyshow.com/watch/tue-june-5-2012/gary-johnson
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