New Home Sales to be reported at 10:00 June New Home Sales will be reported at 10:00 . Current consensus is 475K
More from George: More from George: the Fed hawk is anxious to move to normalization and said tapering will continue as long as the economy progresses. She expects the balance sheet to be near $4.5 tln, and would prefer the holdings to be all in Treasuries. There is a "reach for yield" going on in a number of places, she believes. Too-big-to-fail still exists and is a concern.
Treasury Action: bond yields backed up to session highs Treasury Action: bond yields backed up to session highs following the mixed results on the 30-year reopening, which tailed out slightly, but enjoyed decent components including a very solid indirect bid. The current 30-year yield topped 3.37% before pulling back to 3.36%, compared to earlier lows of 3.325% and the 3.369% award rate on the reopened bonds.
NY Fed bought $0.56 B in TIPS NY Fed bought $0.56 B in TIPS. The Street offered $2.52 B. This is the last buyback of the week. There are only 2 purchases next week, on Monday and Thursday to total $2.75 B to $3.5 B. The size and frequency of the buybacks are declining as the FOMC has continued to trim QE, which is now down to $19 B for this month.