Treasury prices initially moved lower overnight but have leveled off this morning and are hovering near unchanged.  The latest EU Summit in Brussels has reportedly made some progress on improving budgetary discipline, but the market has shown little reaction.  

The US economic calendar is fairly active today with data on US housing, consumer confidence and employment.  The already released employment cost index was in line with expectations of a 0.4% increase in the 4^th qtr.  Next up will be the CaseShiller home price index (expected -0.4% vs prior -0.6% m/m), followed by the latest reading on consumer confidence, which is expected to improve to 68 from Dec level of 64.5. 

Currently, the 10yr yield is at 1.847% (1.835% Monday) and the 2-10 yield spread is at 172bps, unchanged since yesterday morning.

Treasury prices are moving higher to start the week as the latest EU Summit begins in Brussels.  The weekend failed to produce a Greek debt deal and markets are a bit uneasy as a result. 

The US economic calendar is jam packed this week with a plethora of data.  Key reports included today's Dec personal income and spending reports, tomorrow's CaseShiller home price index and consumer confidence index, Wednesday's ISM data and the much anticipated non-farm payroll report on Friday.  Today's PCE report produced mixed results with personal income slightly above expectations but consumption slightly below.

Currently, the 10yr yield is at 1.835% (1.93% Friday) and the 2-10 yield spread is at 172bps, wider by 1bp since Friday morning.

Treasury market is flat this morning with GDP posting a moderate advance and a significant easing of the GDP Price Index. Consumer sentiment still to come. 

Currently, the 10yr yield is at 1.93% (1.973% Thursday) and the 2-10 yield spread is at 171bps, tighter by 4bps since yesterday morning.

Treasury yields continue to fall this morning extending yesterday's rally on the Fed policy announcement that an accommodative environment will be maintained into 2014.  Early data showed Initial Claims in line with expectations and Durable Orders well above consensus. 

Currently, the 10yr yield is at 1.973% (2.053% Wednesday) and the 2-10 yield spread is at 175bps, tighter by 4bps since yesterday morning.

Treasury prices are modestly higher this morning after giving up ground in five consecutive trading sessions.  Economic activity has been relatively light to start this week but that will change today. 

For starters, the World Economic Forum's annual meeting begins today in Switzerland. Later in the day, focus will shift to the US as the latest FOMC rate decision will be released, followed by Fed Chairman Bernanke's press conference.  Meanwhile, the latest release of the MBA mortgage applications index showed a modest decline of -5% versus last week's surge of 23%.  Purchase and refinance activity both decreased 5%. 

Currently, the 10yr yield is at 2.053% (2.042% Tuesday) and the 2-10 yield spread is at 180bps, steeper by 1bps since yesterday morning.

Treasury prices are nearly unchanged this morning ahead of another light day on the economic calendar with nothing new emerging out of Europe.  Two year note auction today is followed by five and seven year auctions tomorrow and Wednesday, respectively.  

Fed meeting begins today with an announcement due at 12:30 eastern tomorrow and a press conference to follow at 2:15. The consensus is no change in fed funds target rate of zero to .25. 

Currently, the 10yr yield is at 2.042% (2.048% yesterday) and the 2-10 yield spread is at 179bps, tighter by 2bps since yesterday morning.

Treasury prices are off slightly this morning with no data to digest and futures are indicating a flat to slightly higher open for equities. 

The economic calendar is quiet to start the week with the Fed announcement scheduled Wednesday afternoon. 

Currently, the 10yr yield is at 2.048% (1.998% Friday) and the 2-10 yield spread is at 181bps, 5bps steeper since Friday morning.

Treasury prices are mostly unchanged this morning as negotiations for a Greek debt settlement continue.  The flight to quality bid has lost some of its luster over the past few sessions as equity markets have surged. 

The US economic calendar takes it down a notch this morning with only US existing home sales report on the docket.  Sales are expected to increase slightly in Dec to 4.65mln from the prior month's level of 4.42mln.

Currently, the 10year yield is at 1.998% (1.938% Thursday) and the 2-10 yield spread is at 176bps, steeper by 6bps yesterday morning.

Treasury prices are edging lower this morning after successful French and Spanish auctions pushed borrowing costs lower. 

The US economic calendar brings another heavy dose of data today.  Both the initial and continuing claims reports posted much better than expected results.  Initial claims dipped to 352k vs. estimates of 385k and continuing claims dipped to 3.432mln vs estimates of 3.590mln. 

Meanwhile Dec CPI data was mostly in line with expectations but housing starts dipped more than expected (657actual vs 690 est).  Currently, the 10 year yield is at 1.938% (1.857% Wednesday) and the 2-10 yield spread is at 170bps, steeper by 7bps yesterday morning.

Treasury prices are mostly unchanged despite overnight news that the World Bank cut its global growth forecast to 2.5% from last year's estimate of 3.6%.  The move associates the risk of an EU recession with an overall slowdown in developing markets. 

Meanwhile, today's US economic calendar is quite active with data on US housing, industrial production and prices.  The early morning release of the MBA mortgage applications index showed a surprise surge of 23.1% vs last week's increase of 4.5%.  Refinances spiked 26%, while purchased posted a less impressive increase of 10%. 

The December PPI report was mixed as the headline PPI unexpectedly fell -0.1% but core prices rose a greater than expected 0.3%. Currently, the 10 year yield is at 1.857% (1.884% Tuesday) and the 2-10 yield spread is at 163bps, unchanged since yesterday morning.     

Treasury prices are edging lower to begin this holiday shortened trading week due to better than expected data on Chinese GDP. Yields are currently hovering near levels posted early on Friday before numerous EU credit downgrades began a flight to quality bid. 

This week's economic calendar is fairly busy with key data including today's Empire Manufacturing report, tomorrow's PPI and Industrial Production Data and Thursday's CPI data.  The already released Jan Empire Manufacturing report was stronger than expected at 13.48 vs estimates of 11. 

Currently, the 10 year yield is at 1.884% (1.895% Friday) and the 2-10 yield spread is at 163bps, 4 bps flatter since yesterday morning.    

Home Savings of America is closed in observance of Martin Luther King Day. 

The Lock Desk will resume normal business hours on Tuesday,  January 17, 2012.

Happy Friday the 13th!

Treasury prices are moving higher this morning as EU debt fears resurfaced after mixed results from Italian debt auctions.  1.90% is the new 2.00% for the 10yr yield as it continues to gravitate to this new lower level.  News out of the EU has remained sparse but the commitment to keep Greece in the EU seems to be weakening.  

Today's economic calendar is fairly busy with reports including Nov trade balance, import/export prices and Univ Michigan consumer sentiment.  November's trade deficit increased more than expected and represents the first increase since June of last year. 

Later this morning, consumer confidence is expected to increase to 71.5 from December's level of 69.9.  Currently, the 10 year yield is at 1.895% (1.900% Thursday) and the 2-10 yield spread is at 167bps, 1 bps flatter since yesterday morning.