Market Analysis

Bond markets are improved this morning after last week's adjustment which sent the 10 yr US Treasury yield from a closing low of 2.93% on Thursday, June 23 up to a closing yield of 3.22% last Friday.   This week is expected to be a volatile week for bonds.

Below is a recap of this week's economic calendar:

Tue, July 5

• May Factory Orders - came in up .8% vs expectations for a 1% increase and a .9% decrease in April

Wed, July 6

• June Institute of Supply Management (ISM) Services Sector Index - expected 54.0 reading vs 54.6 in May.

Thu, July 7

• June ADP Private Sector Employment Change Report - expected increase of 60,000 jobs vs a May increase of 38,000
• Initial Jobless Claims for Week Ended 7/2/11 - expected 425,000 new claims vs 428,000 new claims the prior week
• Continuing Jobless Claims for Week Ended 6/25/11 - expected 3.7 million vs 3.702 million the prior week

Fri, July 8

• June Non Farm Payroll Report - expected increase of 80,000 vs May increase of 54,000.  The Private Sector is expected to have added 110,000 and the Public Sector is expected to have lost 30,000.
• June Unemployment Rate - the rate is expected to remain flat at 9.1%