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Global Market News
12/05/2011
Treasury prices are under pressure this morning as Italy announced austerity measures over the weekend that are aimed at cutting $40B in spending. Not surprisingly, equity markets are responding well to the news and also to reports that EU leaders are continuing to meet in advance of the EU summit that commences later this week. This week’s economic calendar is fairly benign with only a couple of key reports on the docket. Today’s October factory orders report is expected to retrace last month’s +0.3% increase and the Nov ISM nonmanufacturing composite index is expected to post a modest gain of +.0.9 to 53.8. Currently, the 10yr yield is at 2.105% (2.110% Friday) and the 2-10 yield spread is at 282bps, flatter by 2bps since Friday morning.
