Market Analysis

Despite economic reports that were better than expected, bonds are benefiting from selling in the the stock market.  Stock market investors appear to have been "spooked" by the Federal Reserve Meeting statement yesterday that pointed to continued weak economic conditions in 2010. 

In economic news, Initial Weekly Jobless claimsfr the week ended Dec 12 rose by 7,000, which was less than the 9,000 expected.  The November index of leading economic indicators, from the Conference Board, rose 0.9%, beating expectations of a 0.7% jump.  The Philadelphia Fed index, a regional read on manufacturing, jumped to 20.4 in December, the highest since April 2005, from 16.7 in November. Analysts had predicted a decline to 16.5.