Market Analysis

Bonds opened weaker in front of today's US Tresury $32 Billion 7 Year Note acution and then could not gain a footing even when the stock market weakened and despite good results from the auction.

In economic news, December's Durable Goods Orders were up .3% which was slightly better than the .2% increase expected. Excluding transportation items, orders were up .9% which was better than the .5% expected increase.   Initial jobless claims for the week ended 1/23/10 were down to 470,000 which was down 8,000 from last week's 478,000 revised #.  Claims had been expected to drop to 450,000.  The stock market was responding to the continued gloomy jobs picture.  Continuing claims for the week ended 1/16/10 were down to 4.602 million which was higher than the prior week's 4.599 million claims, but lower than the prior week's revised figure which was 4.659 million.