Market Analysis

The bond market improved slightly this afternoon on relief that the US Treasury's $42 billion 5 year auction was not a disaster.  While the auction at a 2.59 bid-to-cover ratio was lower than the 2.81 ratio for the November 5 year note auction, it was in line with the 2.63 ratio in October and avg ratios of 2.458 in the 3rd Qtr 2009, 2.25 ratio in the 2nd Qtr 2009 and 1.792 ratio in the 1st Qtr 2009. 

In other economic news today, the October Case Shiller Home Price Index came in very close to expectations with a year over year price decline for the 20 city index of 7.3%.  December's Conference Board's Consumer Confidence Index came in at 52.9 which was very close to the 53.0 expected result.