Chillin' out till it needs to be funded
The possibility of yields climbing out to unforeseen levels has increased with the continuing recovery in domestic equities adding to all the fuss over emerging markets in the first quarter ( which does continue for the rest of 2012) and the 3 month and 6 month auctions surviving big ticket $33 bln and $31 bln tabs to support higher awarded yields and giving bonds plenty of choice in exiting to more staid bond investors and going back to equities, though the process may well continue into 2014 from the speed at which confidence is returning to the Economy.
The Housing market Indices for example are at twice the level of 17 in September or 15 in June at 28 but they are in no hurry to move from this point even as prices rose everywhere in the US except Arizona and the west where conditions continue to be below par, even as BAB bonds are scheduled to return in California before anyone else.
Even as Housing Permits data return tomorrow, not many second guessers in the markets are trying for anything better than last month’s 699k number though housing permits are likely to stay faster on the Catch up to 700k too.
Existing Home Sales and Purchase report weekly data continue the preponderence of distressed sales/refi as the bank settlement induced foreclosures/modifications continue in high gear.