Market Analysis

After experiencing selling pressure yesterday during the day and then recovering yesterday afternoon, bonds are only slightly negative so far this morning in response to better economic data published today and a 525 to 85 vote in the lower house of Germany's parliament approving an expansion of the European Financial Stability Fund.  The vote was viewed as an important step towards managing the Greek debt crisis in a manner that avoids mayhem.

In economic news, 2nd Qtr US GDP was revised upward from 1.0% to 1.3% which was better than the 1.2% revision the market was expecting.  Initial Jobless Claims for the week ended 9/24/11 came in at 391,000 vs expectations for a 419,000 figure.  Finally, August Pending Home Sales came in down 1.2% vs the down 1.5% the market had been expecting.