| Last | Change | Percent | |
| S&P Futures | 1328.3 | 6.3 | 0.48% |
| Eurostoxx Index | 2169.7 | 25.8 | 1.20% |
| Oil (WTI) | 85.09 | 1.0 | 1.18% |
| LIBOR | 0.468 | 0.000 | 0.00% |
| US Dollar Index (DXY) | 82.28 | -0.229 | -0.28% |
| 10 Year Govt Bond Yield | 1.63% | 0.00% | |
| RPX Composite Real Estate Index | 178.7 | 0.0 |
Markets are up this morning on a potential bail out for the Spanish banks, although the initial euphoria is wearing off. When I checked in last night, the S&P futures were up 16 points. Now they are up 6. During the US financial crisis, the one sure-fire trade was to fade any rally brought on by some sort of government rescue. The S&P futures would spike up on news that the government was intervening somewhere, and then would sell off as people realize the intervention is no panacea. US bonds clearly aren't buying it, with the 10 year unch'd. MBS are flat as well.
While equity markets have rallied on the Spanish bailout, Spanish bond yields have not. After trading up to 6%, Spanish government yields are now over 6.4%. As Bill Gross has noted, the Spanish bond market is rigged, as the Spanish banks are encouraged to buy up debt auctions to make the demand for Spanish debt look better than it really is.
Are we there yet? That is the title of CoreLogic's June MarketPulse report on housing. While noting that previous seasonal strength in 2010 and 2011 ended up fading into year-end, CoreLogic postulates that the green shoots we are seeing indicate the market has turned for good. The caveat: housing won't really turn until the job market is fixed.
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