The Day Ahead: Retail Sales and Week’s Last Big Treasury Auction


Stocks are moderately higher overnight, led by European averages after much better-than-expected debt auctions in Spain and Hungary.  SP futures rose as much as 10 points, but have since backed off 3-4.  Bond yields rose as well, but the movement was much more contained with 10yr yields only climbing to 1.93 and are now back down to 1.92.  Fannie 3.5’s are in the middle of yesterday’s range at 102-29. 

Today is the first morning with some significant economic data.  The much-anticipated December Retail Sales hits at 830am along with weekly Jobless Claims.  The former is expected to have risen 0.3% after a 0.2% rise last month, while claims are seen at 375k versus a previous reading of 372k.  The last major auction of the week hits at 1pm with 30yr bonds.


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