Morning Report – Jimmy Rogers is short the 10-year 02/07/13

Vital Statistics:

  Last Change Percent
S&P Futures  1507.0 0.2 0.01%
Eurostoxx Index 2624.7 7.4 0.28%
Oil (WTI) 96.62 0.0 0.00%
LIBOR 0.292 -0.001 -0.34%
US Dollar Index (DXY) 79.65 -0.074 -0.09%
10 Year Govt Bond Yield 1.97% 0.01%  
RPX Composite Real Estate Index 193.4 0.3  


Another slow news day.  Markets are flat after the ECB maintained interest rates.  Initial Jobless Claims rose to 366k last week, while productivity fell.  Bonds and MBS are down small.

Jimmy Rogers is getting short Treasuries. He has been saying bonds have been in a bubble since 2009, though he has only started shorting them recently.  He plans to increase his position. Guys like Jimmy Rogers can’t affect bond prices (they are too small), but the Fed can, and will once it ends QE and begins to unwind its balance sheet.  The bond vigilante has been dormant for 20 years, but is about to make a re-appearance.

The National Association of Homebuilders Improving Markets Index expanded to 259 in February, with all 50 states represented. Roughly 70% of the metros covered were listed as improving. 

Even though the financial crisis ended long ago, the scars still linger.

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