Even though the market's brief hiccup into green territory was promptly corrected (as expected earlier), it is the mortgage vigilantes' turn to beat the death drum. The 30 Yr Mortgage - 10 Yr UST spread is not helping the new, existing, and otherwise home sale green shoots. And this on top of the Treasury's $7 billion in Open Market purchases of bonds yesterday.

Even though the market's brief hiccup into green territory was promptly corrected (as expected earlier), it is the mortgage vigilantes' turn to beat the death drum. The 30 Yr Mortgage - 10 Yr UST spread is not helping the new, existing, and otherwise home sale green shoots. And this on top of the Treasury's $7 billion in Open Market purchases of bonds yesterday.

Some developing stories:

• US Justice department says NYT report saying it would drop suit against UBS is "simply untrue" (source BNO)

Zero Hedge had some fun recently analyzing the extensive thought process that goes into the decision making that leads to the addition (and, more relevantly, subtraction) of any given stock from the Goldman Sachs conviction list. One could say a case study of exhaustive insight and careful risk management it was not.

Zero Hedge had some fun recently analyzing the extensive thought process that goes into the decision making that leads to the addition (and, more relevantly, subtraction) of any given stock from the Goldman Sachs conviction list. One could say a case study of exhaustive insight and careful risk management it was not.

Until yesterday, the only real risk at the 5th branch of government (4th is the PIMCO/BlackRock two headed hydra) was making sure that 2009 is the year of the biggest bonuses on record (amusingly, now that Cerberus has all but followed Chrysler to its ignominious end (oddly missing from the company's industry expertise page - one would t

• China shares fall on worries about world economy but banks and steel gained.
• Euro edges higher against dollar as Federal Reserve to start 2-day meeting.
• Euro zone manufacturing improvement helps recession ease in June.
• House Democrats to open hearings on a sweeping health care bill.
• Japan may end $1.5 billion Venezuela loan on seizures.
• Japan shares fall after Wall Street’s tumble, investors awaits fresh new on global economy from Fed’s policy meeting.
• Obama set to sign into law an antismoking bill that will give the FDA unprecedented aut
  

• Boeing announces yet another 787 delay, prior delivery date of Q3 2010 scrapped: are those titanium/carbon frame suppliers still alive?

Well, your favorite macro correspondent is back from his break. It's going to take a few days to get back into the swing of things but I may not have that much time...

Submitted by Günter Leitold

I guess there is a very good chance that there will be fundamental changes to global financial markets within the next 5 to 10 years.

This will not only include adjustments to rules and regulations, the structure of how markets work, instruments and processes, but also include fundamental changes in how participants operate and what the financial institutions of the future will look like.

One of the most overhyped and underdelivering companies in the world has liquidated, less than a few years after spending a boatload of capex to purchase uber-expensive machines that ended up being complete garbage and will probably reap 5 cents on the dollar in salvage value. Cardmembers are currently in process of getting their notifications.

One of the most overhyped and underdelivering companies in the world has liquidated, less than a few years after spending a boatload of capex to purchase uber-expensive machines that ended up being complete garbage and will probably reap 5 cents on the dollar in salvage value. Cardmembers are currently in process of getting their notifications.

• Must read: Researching corruption at the Treasury: The PPT 101 (Market Skeptics)
• NRG suit against Exelon bid dismissed (WSJ)
• State Street will have something to say about this: Fed in discussions on changing Repo transactions (Bloomberg)
  

A just issued update publication by ABARE on Australian Commodities (June 2009), in the section summarizing projected 2009-2010 economic activity, ABARE provides a -0.5% estimate for economic decline.

Spreads were broadly wider in the US as all the indices deteriorated. Indices generally outperformed intrinsics (as post-roll derisking covered by index hedges seemed prevalent) with skews widening in general as IG's skew decompressed as the index beat intrinsics, HVOL outperformed but widened the skew, ExHVOL outperformed pushing the skew wider, XO's skew increased as the index outperformed, and HY outperformed but narrowed the skew.