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Trade Deficit Grows
05/12/2010
The trade deficit grew to the highest level in a year due to higher oil prices. GDP for the 16 euro nations grew at a rate of 0.2%, faster than expectations; equities are up. The Treasury will auction $24B in 10yr notes today and $16B in 30yr bonds tomorrow. Right now, the futures market is pricing in a 66% chance that the Fed keeps rates at .25% through September 21st, 2010. Currently, the Ten Year yield is at 3.56% (3.51% yesterday) and the 2-10 yield spread is at 269bps, steepening 3bps since yesterday morning.
