Greek bonds plunge, the dollar makes a comeback and why the S&P 500 is unhinged from reality. Here are some of the things that people are talking about in markets this morning.
Greek endgame gets closer
The yield on the Greek 2-year is surging this morning. Reports over the weekend highlighted just how close Greece came to not paying the IMF last week. The Greek government is now targeting a deal with creditors by Friday.
European bond selloff resumes
It’s not just Greek bonds taking a beating: bonds from Italy to Spain are also heading south. The yield on the Italian 10-year rose for the first time in three days, putting yields over 35 basis points higher than their level at the end of last month.
Dollar kicks off Monday on a high
The greenback is trading stronger against every single major currency this morning, ahead of a busy week for U.S. economic data. Housing numbers are released tomorrow, Fed minutes on Wednesday, a manufacturing PMI on Thursday and inflation data on Friday.
Fed’s Evans talks down 2015 hike
Federal Reserve Bank of Chicago President Charles Evans, a voting member on the FOMC this year, was speaking in Stockholm repeating his call to hold rates at a record low until early 2016.
S&P 500 unhinged from reality
According to the theory of one Nobel Prize-winning economist, this is a reason to be bearish U.S. stocks.