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Today’s Market News
10/17/2011
Treasury prices are opening the week modestly higher as this weekend’s EU summit failed to produce a comprehensive plan. Adding insult to injury, a German spokesman indicated that the EU will not be able to resolve the current issues in time to meet the Oct 23rd deadline. Apparently, one of the major stumbling blocks is getting banks to agree to accept write-downs in the range of 50% on Greek debt (surprise, surprise). In terms of economic data, this week’s calendar is fairly active with key reports including PPI and CPI reports on Tuesday and Wednesday as well as a sprinkling of housing data Tuesday through Thursday. Also, Fed representatives will be busy with appearances throughout the week, including Fed Chairman Bernanke on Tuesday afternoon. Lastly, today’s release of the Oct Empire State Manufacturing survey produced worse than expected results of -8.48 vs estimates of a -4 drop. Currently, the 10yr yield is at 2.235% (2.248% Friday) and the 2-10 yield spread is at 197bps, unchanged since Friday morning.
