Market Analysis

The bond markets are closed today. Investors that are publishing rate sheets have reflected slight deterioration in anticipation of continued deterioration in bonds as a result of increased investor confidence that European leaders are finally about to develop a larger band aid for their debt crisis. Also, last Friday’s September Non Farm Payroll report came in better than expected which reduced concerns that a double dip recession is imminent.

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

Monday, October 10 - economic calendar vacant

Tuesday, October 11

• US Treasury sells $32 billion of 3 year notes

Wednesday, October 12

• US Treasury sells $21 billion of 10 year notes
• Meeting minutes released from 9/21 Federal Reserve Open Market Committee Meeting – given that since this meeting occurred, Sept Payrolls came in better than expected and that European leaders claim they will announce a comprehensive solution to the short term issues around their debt problems, the minutes will probably be discounted.

Thursday, October 13

• Initial Jobless Claims for the week ended 10/8/11 – expected 406,000 figure vs 401,000 the prior week
• US Treasury sells $13 billion of 30 year bonds

Friday, October 14

• September Retail Sales –expected up .6% vs no change in August. Ex-auto expected up .3% vs up .1% in August
• Initial October Univ of Michigan Consumer Sentiment Index – expected 60.0 vs 59.4 in September