Morning Report: Bond yields rising on hawkish central bankers

Vital Statistics:

	Last	Change
S&P Futures	2443.8	5.0
Eurostoxx Index	384.9	-0.9
Oil (WTI)	45.3	-5.4
US dollar index	87.9	-0.1
10 Year Govt Bond Yield	2.27%
Current Coupon Fannie Mae TBA	103
Current Coupon Ginnie Mae TBA	103.81
30 Year Fixed Rate Mortgage	3.91

Stocks are higher this morning after the big banks announced increases in dividends and buybacks in response to passing their stress tests. Bonds and MBS are down after hawkish comments from central bankers globally. 

In the past few days, the Bank of England, the Bank of Canada, and the ECB have warned that short term rates are heading higher. This has sent the 10 year bond yield up over 10 basis points, and has really clobbered the German Bund, which now yields 44 basis points. The Fed Funds futures have tweaked their assessments of the September and December meetings, with the markets now handicapping a 18% chance of a Sep hike (up from 12%) and a 57% chance of a hike in December (up from 50%). 

The third and final revision to first quarter GDP came in at 1.4%, an upward revision of 0.2%, as personal consumption was revised upward from 0.6% to 1.1%. The inflation indicator fell from 2.2% to 1.9%. Know what bumped up the consumption numbers? RVs. If it weren't for Winnebagos, GDP would have grown less than 1%. 

Initial Jobless Claims ticked up slightly to 244k, while corporate profits were up 12% YOY.

The head of the NYSE thinks short sellers are "icky" You want icky? Here's icky.

Good info: 15 money-saving tips for first time homebuyers. Also questions any homebuyer should ask the seller before taking the plunge. 

Hottest real estate markets in June 2017. Mainly the usual suspects, but there are signs of life in the Rust Belt: Columbus OH is #5 and Detroit is #6.