All was quiet in the market yesterday. The $85 billion in U.S. spending cuts are set to begin today, which could move the market.
Treasuries rose, extending their first monthly gain since November, before a report that economists claim will show durable goods fell.
Yesterday we saw uncertainty around Italian elections, which led to a major sell-off in the stock market, and Dow posting it’s worst day of the calendar year.
The bond markets are opening somewhat higher this morning ahead of tomorrow’s release of the minutes of the Federal Reserve’s latest policy meeting.
With no economic releases on the docket this morning, the market will be focused on the $32 billion Treasury action as well as President Obama’s State of the Union address tonight.
Treasury 10-year notes rose for a third day as efforts to trim the European Union budget added to concern that the region’s economy will struggle to expand, boosting demand for safer assets.
Treasuries declined before economic reports showed U.S. service industries expanded in January. Ten-year yields climbed as euro-area data showed services and manufacturing output shrank less than expected.
The bond market is up this morning with the rally being driven by a disappointing unemployment report. There are still lesser economic numbers getting released throughout the day, which has the potential to move the markets.
The report on unemployment benefits showed that claims increased more than forecasted last week, and the market gave up some of its gains. Also, consumer spending in the U.S. climbed last month by the most it has in eight years.
The market is fairly flat this morning ahead of the consumer confidence report and the five-year auction. The consumer confidence report is expected to show another decline for a third month in a row.