Market Analysis

Bonds experienced heavy selling yesterday in response to the announcement in Europe of what are the beginning elements of a much more comprehensive soultion to their debt crisis.  Today the headlines are that investors are questioning the details of the deal.  The reality is that the short-term armageddon scenarios for a domino-like default in Europe with Greece falling and then Italy and Spain are now much much lower.

In economic news in the US, Sept Personal Incomes were up .1% vs expectations for a .3% increase, Personal Spending was up .6%, which matched expectations.  The Univ of Michigan final Consumer Sentiment index for Oct came in at 60.9 vs expectations for a 58.0 reading.