| Last | Change | Percent | |
| S&P Futures | 1345.8 | -12.7 | -0.93% |
| Eurostoxx Index | 2215.7 | -20.4 | -0.91% |
| Oil (WTI) | 95.84 | -1.2 | -1.21% |
| LIBOR | 0.467 | 0.001 | 0.21% |
| US Dollar Index (DXY) | 80.02 | 0.281 | 0.35% |
| 10 Year Govt Bond Yield | 1.80% | -0.04% | |
| RPX Composite Real Estate Index | 175.2 | -0.1 |
Another sloppy morning as people watch the Greeks try and form a governing coalition which may well reject the austerity measures agreed to with the EU. The Greek 10 year is yielding 23.3% and the Athens Stock Exchange Index is now touching 20-year lows. The turmoil in Greece has investors nervously eyeing Spain and Portugal.
This has put pressure on the S&P futures, and a bid under Treasuries. The 10-year traded below 1.8% this morning. I am watching the 1345 level in the S&P 500, which is the 200 day moving average and the low of early March. We came within a couple of points yesterday. Mortgages are rising, but not as much as Treasuries.
Corelogic released its March 2012 Home Price Index yesterday, which showed prices flat YOY. Excluding distressed sales, prices increased overall. The top markets were Wyoming, Virginia, Arizona, North Dakota, and Florida. The worst were Delaware, Illinois, Alabama, Georgia, and Nevada.
FHA foreclosures increased in March, and it released an interesting statistic - that half the mortgages it modified entered into foreclosure a year later. Speaking of mods, Bank of America is offering principal reductions to 200,000 homeowners as part of the State AG settlement.
University of Chicago economist Raghuram Rajan has an interesting paper discussing the best way forward to improve the economy. He points out that for the past 20 years, the US has attempted to address inequality through the credit mechanism. If we can't do something directly for the middle class, we can allow them to do cash-out refis to spend as if they weren't middle class. Ideologically, there will be something for everyone to love and something for everyone to hate. It provides an excellent historical background on how we got here in the first place. Good read.
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