Market Analysis

Bond markets opened slightly negative but have moved into positive territory in late morning trading. The economic calendar is light at the beginning of the week but picks up starting on Wednesday. Below is a recap:

Monday, July 12, 2010

• US Treasury auctions $35 billion in 3-year notes.

Tuesday, July 13, 2010

• US Treasury auctions $21 billion in 10-year notes

Wednesday, July 14, 2010

• June Retail Sales – expected down .2% compared to down 1.2% in May. Excluding the automotive component, expected 0% change vs .8% drop in May.
• May Business Inventories – expected up .2% vs up .4% in April.
• US Treasury auctions $13 billion in 30-year bonds.
• Minutes from the 6/23 Federal Open Market Committee (FOMC) meeting are released – no surprised expected in minutes as investors generally expect the Fed to discuss slowing growth in the 2^nd half of 2010 .

Thursday, July 15, 2010

• Initial Jobless Claims for the Week Ended 7/10/10 – expected down 4,000 to 450,000.
• Continuing Jobless Claims for the Week Ended 7/3/10 – expected down 13,000 to 4.4 million.
• June Producer Price Index (PPI) – expected down .1% vs down .3% in May. The Core PPI (excluding food and energy) expected up .1% vs up .2% in May.
• July Empire State (NY) Manufacturing Index – expected 18.0 reading vs 19.57 in June.
• June Industrial Productions and Capacity Utilization – Production expected to be unchanged vs up 1.3% in May. Capacity Utilization expected 74.2% vs 74.1% in May
• July Philadelphia Fed Index – expected 10.1 reading vs 8.0 in June

Friday, July 16, 2010

• June Consumer Price Index (CPI) – expected up .1% vs up .1% in May. Core CPI, excluding food and energy) expected down .1% vs down .2% in May
• July Initial Univ of Michigan Consumer Sentiment Index – expected 74.5 reading vs 76.0 in June.