Market Analysis

Bond markets were closed today in observance of MLK day.  This week will be light on economic reports.  Also, the US Treasury auction calendar is vacant this week.  Thursday, though the Treasury is expected to announce approximately $120 billion of 2, 5 and 7 year notes.  Trading in the bond markets will be most influenced by the trajectory of the stock market this week.  If stocks fall further that will be supportive of steady to perhaps fractionally lower interest rates.  If stocks rebound, interest rates may inch higher.

Below is a recap of this week's economic calendar.

Wednesday, January 20, 2010

December Housing Starts and Building Permits - Housing Starts expected up to 575,000 from 574,000 in November.  Building Permits expected down to 580,000 from 584,000 in November.

December Producer Price Index (PPI),  a measure of inflation at the wholesale level - Expected unchanged vs up 1.8% in November.  The Core Rate (excluding food and energy) expected up .1% vs up .5% in November.

Thursday, January 21, 2010

Initial jobless claims week ended 1/16/10 - expected down 4,000 from 444,000 last week.

Continuing jobless claims week ended 1/09 - expected up 4,000 from 4,596,000 the prior week.

Conference Board December Leading Indicators - expected up .7% vs up .9% in November

January Philadelphia Fed Survey - expected reading of 18.8 vs reading of 20.4 in December