Both stocks and bonds started the week this morning with little changes. Stock indexes were slightly better with the 10-yr note yield at 2.88% -1 bp. MBS prices at 8:30 am EST was up +5 bps from Friday’s close.
This week’s calendar has key economic data; CPI, PPI, Retail sales and housing starts and permits. Today two Treasury auctions will take place; at 11:30 am $28B of 3s, and at 1:00 pm $21B of 10s will be re-opening the issue from February. Treasury budget is expected to explode -$216B, which may get some comments as monthly federal deficits are expected to be about $1Trillion this fiscal year that ends at the end of September. Government debt is set to increase this year, the next and the next and the next from the tax cuts and infrastructure spending. More from source: http://remtg.co/SocialNews?id=Chris_691_1353_636564613393800000