Bond Ticker
3:49 pm - Rally On: The sell off that has lasted throughout most of the day has finally halted as yields are now slightly lower after breifly crossing into positive territory. The long bond is generating the most interest as its 3.722% yield is enticing to some. After breaking support earlier in the session, the 2-10-yr spread has escaped the abyss for the time being and trades 211.8. Action in the 10-30 spread has remained quiet with the whole session seeing a range of 117.5 to 120.5. Spot gold was unable to climb into record territory, but has been impressively resilient, trading fractionally higher at 1292. Economic data that may move the markets tomorrow includes durable orders and durable orders --ex transportation (8:30), as well as new home sales (10). Treasury Secretary Geithner speaks in Dallas (8:30) as does Fed gov Duke at a mortgage hearing in D.C. (9). The Fed's Open Market Operations continues with the purchasing of treasuries that mature in 2014/2016.
2:49 pm - Range Bound: The action in the dollar has been dull as traders have been lulled to sleep by an inside trading day (both the high and low are inside the previous day's range). The euro has seen a similar chop to the dollar's, spending most of the session between 1.3320 and 1.3360. The rise in the pound has slowed, but it still trades at 1.5700 which would be its best close since mid-August. Safe-haven buying in the swiss and yen has waned as they both trade near unchanged at .9855 and 84.40 respectively. 

2:00 pm - Drifting: Treasuries have been drifting lower as volume has dried up over the course of the session. The 10-yr yield has recently made a run at yesterday's settlement, but has so far been unable to turn higher. The 2-10-yr spread has steepened significantly from today's flattest of 206. 2, and has turned higher for the session at 213. The 10-30-spread has seen little movement from its tightest level of 117.2 as action has been muted. After another unsuccessful run at a new record high, spot gold has backed off its best levels and trades 1292.

1:38 pm - Treasury Auctions: Next week U.S. Treasury to auction $36 bln of 2-yr notes, $35 bln of 5-yr notes, and $29 bln of 7-yr notes
12:44 pm - Hanging On: The dollar index is back near 80.00 after visiting 79.85 just after high noon. Selling pressure in the euro has eased a bit as the single currency saw a move back up to 1.3360 from its session low of 1.3304. The pound continues to trade near its best level since mid-August, pushing 1.5720 just as the swiss makes a run at unchanged near .9860. Today's best of 84.26 in the yen marks the strongest the currency has been since the BOJ intervened on September 15th. Risk taking continues its comeback as the aussie/yen cross is testing 80.50, its best since its overnight highs near 81.00.

11:53 am - Dicey: After selling off following today's second round of economic data, treasuries have chopped around in a tight range for the last two hours. The long end has generated the most interest so far with the 30-yr yield hovering just below 3.70%. The 2-10-yr spread broke its support near 210, and looks to recapture that level. A move back down to the 200 area is appearing more and more likely as investors move up the curve to grab yield. The 10-30 spread has worked its way flatter, and now trades just above 117.5 support. Spot gold took a run at another new all-time high, but came up just short, hitting 1296.10 (all-time high is 1296.30) before backing down to 1293.
11:00 am - At Support: The dollar has backed off its session best of almost 80.20, and now trades south of the critical 80.00 level. Another push lower in the greenback will lead to a cascade of selling that may drop the buck to 78.00 before any real support is found. The euro has struggled in the early hours of U.S. trading, but did bounce from just above 1.3300 to 1.3350 following the better-than-expected leading indicators and existing home sales data. A fresh session high in the pound was just hit as the currency pushed to 1.5740, its best since mid-August. The swiss is back near the flat line at .9854 from today's strongest of .9805 (its best since March 2008) while the yen sits near its weekly best of 84.30. Risk appetite has improved with the aussie/yen cross back near 80.20 after visiting the 79.80 level.

10:27 am - Issues: Mattel plans to sell $250 mln 10-yr notes and $250 mln 30-yr bonds
Gerdau SA to sell $1.25 bln of 2021 maturities with yield of 5.875%
10:13 am - Easing: Treasuries eased off their best levels of the morning prior to today's 2nd batch of economic data, and then continued to move lower as leading indicators and existing home sales topped expectations. The yield on the 10-yr rose from a session low of 2.480% to above 2.52% following the release of the data. The curve ran steeper to 209.1, but still remains flatter for the session. Spot gold reacted to the data by falling to 1287 from 1292, but is now back near 1290.

09:32 am - Dollar Battles 80 as European News Rattle Markets: The dollar index pushed above the 80 level earlier as poor economic data and a fresh concerns on Irish sovereign debt had market participants scrambling for safety. However, the DXY fallen back below that key 80-level and tumbled back to 79.85 as U.S. Equity markets prepare to open. 80 will remain an important level with the index acting as if it will straddle that area as markets debate the weakness in Europe against expectations of a low interest rate and possible QE II in the U.S.. Existing home sales promises to be a key driver of markets today.

The euro gave up some of its recent gains this morning as a round of poor PMI surveys coupled with poor Irish economic data and bond auctions weighed on the single currency. However, the euro was able to hold the 1.33 level and is making a strong push back towards 1.34. The move is certainly impressive given the steady flow of negative headlines/data out of the region.

The pound is one of the bigger winners this morning as it recovers from yesterday's decline. The drop was due to the BoE minutes which unveiled that the members were concerned about economic growth and looking into the possibility of expanding its current bond purchase program.

The yen is stronger this morning as the unilateral intervention by Japanese officials is failing to stem the appreciation. Japan's Prime Minister Naoto Kan is scheduled to meet with President Obama with the currency intervention being the key topic. The yen is likely to muddle around in the 83-85 area in the next couple of days with traders eventually pushing it lower to test the MoF's resolve.

The yuan has slipped to 6.7045 this morning, its best level ever against the dollar as Chinese Prime Minister Wen Jiabao is set to meet with President Obama on the sidelines of the U.N. conference. The banter between the two state heads has been increasing ahead of this meeting with a possible vote in Congress to take action against the Chinese currency coming on Friday.
08:39 am - Treasuries are seeing active buying following the weaker-than-expected initial and continuing claims data. Yields are pushing to their lowest levels of the morning with the 10-yr yield near 2.501%. The 2-10-yr spread is working flatter, dipping below 209. The 10-30 spread saw a spike higher on the news to 120.5, but has since eased off as traders weigh buying the long bond. Stay tuned for existing home sales and leading indicators (10).
07:42 am - Risk Off: The dollar index is back above 80.00, trading 80.10 after weaker-than-expected GDP from Ireland, and sluggish eurozone PMI data are weighing on the euro. The single currency is back down to 1.3315 after seeing 1.3440 at yesterday's peak. The pound has seen both sides of the flat line, recently pulling back to 1.5675 from 1.5700. The safety of the swiss and the yen is once again appealing as the safe-haven currencies are trading better to .9840 and 84.30 respectively. Risk off is the name of the game with the aussie down to .9475 and the aussie/yen cross seeing 79.88, its lowest level in a week.
07:24 am - Overnight Buying: Yesterday's late day profit taking in treasuries sent yields well off their lowest levels of the day, but overnight buying has them just off yesterday's lows. Buying can be found across the curve with the 7-yr yield down over 4 basis points to 1.911%. The 10-yr saw some buying on relatively heavy volume for an overnight session, pushing its yield back down to 2.521%. Look for a battle between treasury bulls and bears if the 10-yr falls to 2.47% as any move below that support area would represent "recovery" lows in terms of yield. After yesterday's bounce to 213 off the 208 support level, the 2-10-yr spread is working flatter, running 210.3. Inflation fears are still high as investors continue to look protection in the TIPS. The 5-yr tips are now yielding -0.081%, but are still off mid-August levels of -0.153%. Today's data has the usual initial and continuing claims (8:30) as well as existing home sales and leading indicators (10). Fed speak has Chicago's Evans giving welcoming remarks at the Chicago Fed/IMF conference (10:40), followed by former Fed Chair Volcker (13).