Stimulus Momentum Continues and Home Prices Rise

Investor optimism over the recently signed covid relief bill continues to drive equity indices to record highs. Bond prices have slipped slightly in early trading with the Ten-Year’s yield hovering around 94 basis points as the Long Bond rests at 1.68%. The passage of supplemental legislation that would raise the amount of direct relief payments to individuals appears unlikely. Crude oil is up about a half-dollar to $48.20 while gold’s $5 gain takes that price to $1,878.

Today’s only scheduled data was just released by Case-Shiller CoreLogic with the news that, in October, its 20-City House Price Index rose by 1.61% beating estimates looking for a 1% rise. The prior month’s growth rate was revised to 1.44% from 1.27%. Year-over-year, the growth pace came in at 7.95% against an expected rise of 6.95%. For all of the United States, October’s year-over-year price rise came in at 8.41% in a big boost from the prior month’s 6.99%. Later today, the Treasury will sell $59B Seven-Year notes.