1/12/10

Yesterday was a bit of a slow day in rate-land, with the only volatility coming after “hawkish” comments from Fed Governor Hoenig who said that an unemployment rate of 10% does not preclude the Fed from raising rates. This week becomes busier as we approach Friday. Thursday and Friday contain news on inflation, manufacturing, and retail sales. And besides the standard news we have the auction and several Fed speakers. (The next Fed meeting starts on January 26th.) Today we have the Treasury’s 3-yr auction. We will have the Trade Balance figures at 8:30AM EST, and then the Fed’s Beige Book release at 2PM EST, but ahead of those items dealers are reporting a wave of solid buying, and rates are down somewhat this morning.