Market Analysis

Bonds are slightly improved this morning as investors are anxious that a deal has not yet been announced between Greece and its private sector creditors. No key economic data is being released today. This week interest rates will be most heavily influenced by the Greek debt negotiations (a deal being announced would be expected to put upward pressure on rates), activity in equities as a result of corporate earnings announcements (so far, results have been mixed), the results of the US Treasury auctions (investors are looking to see whether demand will wane as the flight to quality trade of those seeking safe haven from Europe was seeming to unwind) and Friday’s initial estimate of 4^th Qtr US GDP (estimates are for over 3% growth).

Below is a recap of this week’s economic calendar.

Tuesday, January 24

• US Treasury sells $35 billion of 2-year notes

Wednesday, January 25

• December Pending Home Sales – expected down 3.0% vs up 7.3% in November
• Federal Reserve Open Market Committee (FOMC) post meeting announcement – in light of the fact that Jobless Claims have been coming in better than expected, the Fed is expected to be guardedly optimistic that the economy is improving. No change in the Fed Funds rate is expected
• US Treasury sells $35 billion of 5-year notes

Thursday, January 26

• December Durable Goods Orders – expected up 2% vs up 3.7% in November. Excluding Transportation, Orders are expected to be up .7% vs up .3% in November
• Initial Jobless Claims Week Ended 1/21 – expected 375,000 vs 352,000 the prior week
• December New Home Sales – expected annualized pace of 321,000 vs Nov pace of 315,000
• December Leading Indicators – expected up .7% vs up .5% in November
• US Treasury sells $29 billion of 7-year notes

Friday, January 27

• Initial Estimate 4^th Qtr US GDP – expected growth of 3.2% vs 1.8% growth in the 3^rd Qtr
• Final University of Michigan January Consumer Sentiment Index – expected 74.2 vs 74.0 initial estimate