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Today’s Market News
10/03/2011
Treasury prices on the long end of the curve are modestly higher to open the first trading day of October. Investors are offering a tepid response to the latest round of austerity measures approved by Greece’s cabinet over the weekend. The next round of financial aid is now in jeopardy as the apparent plans didn’t go far enough in reducing the 2012 budget deficit. In terms of economic data, investors will be laser focused on Friday’s employment report. Job creation has slowed in recent months and consensus estimates are expecting the unemployment rate to increase to 9.2% from the prior 9.1% level. Meanwhile, today’s schedule is fairly active with the Sept ISM manufacturing index highlighting the docket. Growth is expected to slow slightly to 50.5 from August’s level of 50.6. Currently, the 10yr yield is at 1.884% (1.931% Friday) and the 2-10 yield spread is at 164 bps, flatter by 4 bps since Friday morning.
