Market Analysis

The bond market has opened weaker in response to lower than expected initial jobless claims in the US, a rate cut by the European Central Bank which was viewed as a move by Europeans to promote growth even at the expense of possible inflation, and a growing belief that the Greek Prime Minister will not survive a confidence vote and that the referendum he had scheduled for the Greek people to vote on the bail-out plan will be cancelled.  Additionally, even if there is a vote, it is becoming difficult to conceive of the Greek people voting for what would ultimately be worse austerity measures than if they accept the bail-out.

In US economic news, yesterday the Federal Reserve lowered their forecast for GDP growth for 2011 and the coming years, but was more upbeat than expected in regards to the US rebounding from the 2nd Qtr "soft patch."  No new easing measures such a new mortgage purchase program were announced.  In this morning's news, Initial Jobless Claims for the week ended 10/29 came in at 397,000 which was lower than the 401,000 expected.