Market Analysis

The bond market continued to deteriorate today as investors adjust expectations for higher interest rates in 2010.

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

Monday, December 28, 2009

US Treasury auctions $44 billion in 2 year notes - Demand for the auction was slightly weaker than had been anticipated with a bid-to-cover ratio of 2.91 vs November's 3.16 ratio.

Tuesday, December 29, 2009

October Case Shiller Home Price Index - expected to show continued monthly improvement with year over year prices down 7.1% compared to 9.36% in September.

December Conference Board's Consumer Confidence Index - expected to increase from 49.5 to 53.0

US Treasury auctions $42 billion in 5 year notes.

Wednesday, December 30, 2009

December Chicago PMI (survey of business conditions in the Chicago area) - expected to come in at 55.1, slightly worse than November's 56.1.

Thursday, December 31, 2009

Initial Jobless Claims week ended 12/26/09 - expected up by 8,000 to 460,000 up from 452,000 from the prior week.

Continuing Jobless Claims week ended 12/26/09 - expected up by 24,000 to 5.1 million up from 5,076,000 the prior week.

Friday, January 1, 2010

Economic calendar vacant.