Today's Market Commentary
As stock prices fell, bond prices rose on Friday to close the year on a strong note. It was the third straight day of gains. The only economic news, existing home sales, unexpectedly rising and demonstrating stability with sales being virtually unchanged for the past three months even as new home sales have continued to decline. The number of existing home sales dwarfs new home sales by a 7:1 to 8:1 ratio. Trading was quiet and thin on Monday and closed early. This morning, the bond market starts the year with ISM's Manufacturing index. Friday will produce the December employment report. The amount and significance of this week's data is striking and should overshadow outside news for the first time in months.
GS Skinny on ISM nonmfg/construction spending--Setback in mfg/nonres construction better
BOTTOM LINE: ISM survey implies a setback in US industrial activity. Although economy probably still growing, this will raise concerns about broader decline, especially as manufacturing is supposed to benefit from trade improvement. Construction outlays better than expected outside residential sector.
FNMA 6% February Coupon
Currently UP 10/32 (31.25 basis points)
Current Indices
Index | Today | Yesterday | Month Ago | Year Ago |
1 Yr T-Bill/CMT | 3.340 | 3.340 | 3.860 | 5.000 |
MTA | 4.528 | 4.662 | 4.662 | 4.933 |
1 Month Libor | 4.570 | 4.600 | 4.668 | 5.320 |
6 Month Libor | 4.566 | 4.596 | 4.811 | 5.370 |
1 Year Libor | 4.188 | 4.224 | 4.603 | 5.340 |
5 Year Treasury | 3.300 | 3.594 | 4.169 | 4.799 |
10 Year Treasury | 3.926 | 4.237 | 4.642 | 5.023 |
Prime | 7.250 | 7.250 | 7.500 | 8.250 |
;)
Links;)
Tags (Tag Cloud);)
Archives
