This week's economic calendar:
8:30 am Q3 final GDP (+2.7% frm +2.5%)
10:00 am Nov existing home sales (+4.8% to 4.65 mil units annualized)
FHFA Oct home price index (N/A)
8:30 am weekly jobless claims (+4K to 424K; continuing claims 4.075 mil frm 4.135 mil)
Nov personal income and spending (income +0.2%, spending +0.5%: personal consumption index +0.1%)
Nov durable goods orders (-1.0%; ex transportation orders +1.0%)
9:55 am U. of Michigan consumer sentiment index (75.0 frm 74.2)
10:00 am Nov new home sales (+6.6% to 303K units)
The current bounce in prices (lower rates) should not be taken lightly; suggest taking advantage of it and get deals nailed down that were caught in the spike up in rates. The outlook continues to be negative for interest rates; as long as markets are expecting a strong economic improvement in 2011 as they do now, lower rates are not likely. As we see it now, the 10 yr note may decline to 3.17% where it will likely meet resistance; presently the 10 yr is trading at 3.28%. If the 10 does make it to 3.17% mortgage rates will also decline by 10 more basis points. Thin markets over the next two weeks have the potential of becoming choppy and volatile, doesn't take a big trade to move the markets.
Looking to next week, Treasury will be back borrowing; Monday 2 yr note, Tuesday 5 yr note and Wednesday 7 yr note.
The stock market opened better this morning, the dollar a little better but relatively unchanged.