EFFECTIVE 5:00 PM EASTERN TIME: 11/21/97 /_________________\
KEY INDICATOR CURRENT CHANGE FROM LAST YIELD |6-Mth CD :5.80% *|
--------------- --------- ---------------- ------ |11th COFI:4.941% |
3-month T-Bill: 5.10 - down 3 basis pnts-5.24% |6Mo-LIBOR:5.805% |
10 Year T-Note: 102 10/32 - up 8/32 -5.81% |1Yr TBill:5.44% *|
Long Bond.....: 101 08/32 - up 12/32 -6.03% |3Yr TBill:5.76% *|
Dow Jones.....: 7881.07 - up 54.46 |5Yr TBill:5.81% *|
FHLMC 60 day..: 7.33% - down from 7.34% (11/20) |10YrTBill:5.88% *|
FNMA 60 day...: 7.31% - from 7.31% (11/20) |30YrTBond:6.12% *|
|PRIME - 8.500%|
Todays Interest Rate/Loan Fee Pricing Trend: |DISCOUNT - 5.000%|
*** UP/STABLE *** |FED FUNDS- 5.50 |
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* Wkly Average ending 11/14
Next week's holiday shortened economic calendar is fairly light with Wednesday's reports on Durable Goods Orders and revised 3rd quarter Gross Domestic Product (GDP) having the most significance. Traders will also scrutinize the Friday release of the Chicago Purchasing managers report as it may reveal what the National Association of Purchasing Managers (NAPM) may look like on the following Monday. (see the calendar for details).
Bond prices ended modestly lower yesterday on profit-taking and various other factors, although the yield of the Treasury's benchmark 30-year bond briefly touched the key 6% level during the session. In late trading, the price of the benchmark 30-year Treasury bond was down 10/32, raising its yield to 6.057% from 6.032%.
Buying of longer-term maturities buoyed the market early in the day, with some investors reported to be shifting out of mortgage securities and into Treasurys. But Treasurys then retreated as the dollar lost ground against the yen and concerns rose that Japanese holders of U.S. Treasurys -- perhaps the government of Japan -- might sell some U.S. government issues and put the proceeds into Japanese equities to support Japan's stock market.
Traders said the strengthening of the yen vs. the dollar clearly put pressure on Treasurys, however. Late Thursday in New York, the dollar was quoted at 125.94 yen, down from 126.91 yen the previous day.
In addition, with no major economic data on the docket Friday, the market may be giving up ground in anticipation of next week's auction of $26 billion in 2-Year and 5-Year Notes, some said.
The market didn't react much to economic data Thursday. Among releases, the Commerce Department said the U.S. trade deficit widened to $11.1 billion in September, compared with a revised $9.5 billion deficit in August. The September deficit was wider than the figure of $10 billion that had been forecast....
DATE ECONOMIC REPORT FORECAST ACTUAL
---- ----------------------------- -------- ------
Tue 11/11 Veterans Day - Treasury Market Closed
11/11 Mitsubishi and Johnson Redbook - weekly retail sales
Wed 11/12 FOMC Meeting - - - - - - - - - -
Thu 11/13 3rd Qtr Non-Farm Productivity +3.0% +4.5%
11/13 Initial Jobless Claims (11/08) 310,000 310,000
11/13 Atlanta Fed Index 10.0 17.7
11/13 Sept FOMC Minutes - - - - - - - - - -
11/13 Greenspan Speaks on Asian Markets 10:00am est
Fri 11/14 Producer Price Index(PPI)(Oct) +0.1% +0.1%
11/14 PPI Core Rate Unchanged Unchanged
11/14 Retail Sales (Oct) +0.3% -0.2%
11/14 Consumer Sentiment (UofM)(Nov) 102.0 106.1