27. January 2011 11:04
Bonds are relatively steady this morning in spite of some disappointing economic data in the US:
- Durable Goods Orders [Dec] -2.5% (exp. +1.5%)
- Durable Goods ex Transportation [Dec] +0.5% (exp. +0.9%)
- Initial Jobless Claims 454k (exp. 405k)
- Continuing Jobless Claims 3.991MM (exp. 3.873MM)
While the durable goods orders were quite weak, the November set was revised higher, providing a bit of an offset. There is no such balance in the case of the jobless numbers.
Globally, S&P downgraded Japan’s credit rating, reminding markets that sovereign debt issues have not gone away. Evidently a debt to GDP ratio of 200% warrants a AA- rating, not the AA level that it had enjoyed at 195%.
There is no Canadian data out until Monday when we get Real GDP numbers for December, but watch Friday morning’s advance estimate of Q4 GDP in the US.