Morning Report – a consensus forming on QE? 6/10/13

Vital Statistics:


  Last Change Percent
S&P Futures  1644.8 6.2 0.38%
Eurostoxx Index 2716.5 -7.6 -0.28%
Oil (WTI) 95.33 -0.7 -0.73%
LIBOR 0.274 -0.001 -0.36%
US Dollar Index (DXY) 81.82 0.146 0.18%
10 Year Govt Bond Yield 2.18% 0.01%  
Current Coupon Ginnie Mae TBA 101.5 0.1  
Current Coupon Fannie Mae TBA 100.1 -0.2  
RPX Composite Real Estate Index 202.4 0.2  
BankRate 30 Year Fixed Rate Mortgage 4.03    


Markets are higher this morning on no real news.  There is no economic data this morning. Bonds are weaker, with the 10 year yield at a 16 month high of 2.18%. MBS are down small.
Pretty light week, data wise. We will get NFIB Small business Optimism on Tuesday, retail sales on Thursday, and industrial production / capacity utilization on Friday. None of these should be market moving. 
Compass Research is out saying the death of NJ Senator Frank Lautenberg pretty much makes Mel Watt an unlikely confirmation. It drops his “yes” votes from 56 to 55. Separately, KBW is out saying that Fannie Mae common stock is worthless. Of course is still sports a $11.4 billion market cap
Home equity increased by $816 billion in Q1, according to the housing scorecard, put out by HUD. Delinquencies are down 7% in the month of May. In spite of the back up in mortgage rates, housing still remains highly affordable.
US bond fund redemptions are the highest since 1992. Bill Gross, who’s fund lost 1.9% in May predicted that April of 2013 will go down as the end of the three decade bull market in bonds that began in the early 1980s. A poll by Bloomberg predicts that the Fed will cut its quantitative easing program from $85 billion a month to $65 billion a month at the October 29-30 FOMC meeting.
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