US Economy and Credit Markets Week Ended Oct. 14, 2011
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Longer dated treasuries fell during the bond market's holiday shortened week on better than expected US economic data and rising confidence that Europe is making progress towards a debt resolution. Prices were lower Tuesday and Wednesday as investors' risk appetite grew stronger due to positive news coming out of Europe. Treasuries rose on Thursday due to strong demand in the 30-year auction amid resurfacing concerns about the debt crisis in Europe. Prices fell again Friday as retail sales climbed 1.1% versus the expected 0.7% and retail sales less autos also moved higher than expected growing 0.6% compared to the anticipated 0.3%. Major economic reports (and related consensus forecasts) for next week include: Monday: October Empire Manufacturing Index (-4.00), September Industrial Production (0.2%) and September Capacity Utilization (77.5%); Tuesday: September Producer Price Index (+0.2% MoM, +6.4% YoY) and September Producer Price Index Excluding Food and Energy (+0.1% MoM, +2.4% YoY); Wednesday: September Consumer Price Index (+0.3% MoM, +3.8% YoY), September Consumer Price Index Excluding Food and Energy (+0.2% MoM, +2.1% YoY), September Housing Starts (595,000, 4.2% MoM), September Building Permits (610,000, -2.4% MoM) and the Fed's Beige Book released. Thursday: Initial Jobless Claims (402,000), September Leading Indicators (0.3%), October Philadelphia Fed Index (-9.8) and September Existing Home Sales (4.93M, -2.1% MoM).
Posted on Monday, October 17, 2011 @ 8:34 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.