Unlike the June Fed meeting, the FOMC announcement at 2pm today is expected to be an uneventful affair: as DB's Jim Reid pointed out earlier, "given its late July and given the Fed will likely announce an end to balance sheet reinvestment in September (starting from October), this could be a relatively dull meeting."
After disappointing existing home sales (following a notable drop in homebuilder confidence), new home sales modestly disappointed in June (610k vs 615k exp) with a small downward revision to May...
(the 3rd downward revision in the last 4 months).
Perhaps more notable is the 3% drop in median home prices YoY following a big downward revision in May (from record $345,800 to $324,300).
Via Global Macro Monitor,
“History doesn’t repeat itself but it often rhymes.” – Mark Twain (maybe)
We have been speaking a lot about how the liquidity in the market today is different than in the past. The chart below reflects this better than anything we have seen.
After triumphantly returning to the bond market three years after it last issued a euro-denominated long bond (which one year later nearly defaulted when only a third bailout prevented Grexit), this morning Bloomberg has provided details of who the lucky buyers of the just priced €3BN bond offering were. And not surprisingly, the biggest source of new funds for the Greek government (which will then use most of this to pay interest owed to the ECB) were US buyers.
Why Surging UK Household Debt Will Cause The Next Crisis