How important are immigrants to the U.S. housing market? At least according to University of Washington economist Jacob Vigdor they could own roughly 12.5% of the housing stock in the U.S. worth about $3.7 trillion in aggregate.
This past Saturday, two weeks after the White House unveiled new sanctions on two dozen Iranian entities in retaliation for a recent ballistic missile test, Iran's elite Revolutionary Guard announced it was set to conduct military drills this week despite warnings from the United States not to engage in such activity. General Mohammad Pakpour, commander of the force's ground units, told a news conference that "the manoeuvres called 'Grand Prophet 11' will start Monday and last three days." and warned that "rockets would be used" without specifying which kind.
In China's latest test of the US response to its escalating claims of islands in the South China Sea, Reuters reports that Beijing has "nearly finished building almost two dozen structures on artificial islands in the South China Sea that appear designed to house long-range surface-to-air missiles." Predictably, such a development will likely raise questions about whether and how the United States will respond, given its vows to take a tough line on China in the South China Sea. The structures appear to be 20 meters (66 feet) long and 10 meters (33 feet) high.
The ongoing scramble for German safety away from French political uncertainty, has led to yet another blow out day for German 2 Year Schatz, with the yield tumbling to a fresh all time low of -0.92%, as Eurozone breakup concerns have spread from the bond market, and are now pressuring the euro sending the EURUSD below 1.05 for the first time in over a month.
The rush into German paper and out of France, means that the 10Y Greman-French spread has topped 0.8%, the widest in over four years, while the 2Y US-German spread is now well over 2%, the widest since at least 2000.
What started off in familiar fashion, with Asian stocks rising, and Europe hitting multi-month highs and US futures in record territory has stumbled in recent minutes following a continued rush for safety in short-dated German Bunds (the 2Y is now trading at -0.92%) and ongoing selling in the USDJPY, which has pushed Stoxx 600 back to unchanged, and S&P futures to modestly red for the session.
The exact catalyst is unclear although traders are citing continued French political risks, as the recent OAT selloff continued this morning on Le Pen fears.