Market Analysis

Bond markets opened down but mortgage bonds recovered during the day. US Treasuries remained down but were improved from morning levels. Stocks opened higher but closed lower. The news which drove markets in the morning was this weekend’s announcement by China that they would gradually let its currency rise against the dollar. US exports would be a lower cost to the Chinese with a stronger currency.

Below is a recap of the economic calendar for this week:

Monday, June 21, 2010

• Economic calendar vacant

Tuesday, June 22, 2010

• May Existing Home Sales – expected up to an annualized pace of 6.1 million from 5.77 million in April
• May New Home Sales – expected down to a 430,000 annualized pace from a pace of 504,000 in April

Wednesday, June 23, 2010

• Federal Reserve Federal Open Market Committee (FOMC) Rate Decision and Post Meeting Statement – no change is expected to the short term bank lending rates the Fed controls and no change in language is expected in the Fed’s post-meeting statement

Thursday, June 24, 2010

• May Durable Goods Order – expected down 1.3% vs up 2.8% in April. Excluding the transportation component, expected up 1.3% vs down 1.1% in April.
• Initial Jobless Claims week ended 6/19/10 expected down 12,000 to 460,000
• Continuing Jobless Claims week ended 6/12/10 0 expected up 9,000 to 4.58 million

Friday, June 25, 2010

• 3^rd Estimate 1^st Qtr GDP – expected up 3.0%, no change from the 2^nd estimate
• University of Michigan Final June Consumer Sentiment Index – expected 75.5, no change vs initial estimate.