This Week: Treasury will auction $72B of notes and bonds beginning Tuesday through Thursday. Economic data is rather sparse this week, most attention will be on how equity markets perform and the demand for US treasuries at the auctions. Monday morning likely will be quiet with stock indexes directing the bond and mortgage markets. The 10 yr note continues to trade under 2.00% but not likely to fall much more unless the situation in Europe deteriorates further. No progress over the Greek debt talks, it never seems to draw to a conclusion. Last week the employment data for Jan and the two ISM indexes were all better than forecasts, and to some extent refutes what the fed has been saying about the economic improvement. Interest rates will remain low as the fed wants but at present levels we do not see much more decline with the 10 yr finding strong resistance when is falls to 1.80% (currently 1.92%).
TBWS
