CME Futures -Post April CS #’s

Prices of CME housing futures were generally higher after this morning’s release of the February Case Shiller indices.

Post CS #s

By the close, prices moved higher (as measured by mid-market levels) in 9 of the 11 contracts (all but BOS and LAV).  Advances were lead by the 3 California markets (and Miami).  (Note that the SFRX15 price of 218.0 form April is a quote from a the 26th.  There was no offered quote at the close of the 27th.  Note also that the CS index history does not include any revisions posted today).

In several cases offers moved up much more than bids, resulting in wider bid/ask spreads 7 contracts.    Much of the spread widening took place in the X16 and X17 contracts as bid/ask spreads for the HCI X16 and X17 contract widened.  The X16 contract is one leg of several IC (intercity spread) orders so wider HCIX16 quotes spilled into other regions.  (Note: this is the first time over several months that HCIX16 closed with wider than a one point bid/ask spread.  I could use some help tomorrow on that single contract.

There were trades across the three front CHI contracts and the first two HCI contracts.  There was a flurry of quote changes in CHI and DEN so those might be the two likeliest contracts to trade tomorrow.

Please feel free to contact me (johnhdolan@homepricefutures.com) if you have any questions.