Markets -post June CS release
Case Shiller futures prices are quoted higher after this morning’s positive numbers. Bids were up 2-4 points in the most in those contracts where the indices were relatively stronger (e.g. WDC, SFR). Similarly, some NYM bids were lower on the day as the NYM index was barely positive (+0.1% month/month).
The strong index results resulted in much higher offers (+5-7 points in the case of SDG and SFR) resulting in much wider bid/ask spreads. The biggest widening in bid/ask spreads occurred in some of the less frequently traded markets (e.g. DEN, LAV and SDG). Surprisingly (to me) both LAX and CUS, two markets that seem to receive more focus, were the two market were spreads widened the most.
Price curves seemed to shifted higher (rather than steepened or flattened).
There were only three trades -late in the day – in BOS and WDC.
With the shift in prices and the increase in bid/ask spreads, I expect option prices to adjust. Will try to post tomorrow.
