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Treasury Prices Modestly Higher
07/05/2011
After last week’s ugly performance, Treasury prices are modestly higher to start this holiday shortened trading week. Now that the Greek austerity vote is behind us, investors will shift focus back to the US with Friday’s June payrolls report highlighting the docket. The US debt ceiling debate will also begin to take center stage as the July 22nd deadline is fast approaching. Today’s economic calendar brings the May factory orders report, which is expected to rebound by 1.0% from the prior reported level of -1.2%. In global economic news, rumors that China’s debt may be understated and talk of potential rating agency downgrades of Greece have sparked a modest flight to quality bid. Currently, the Ten Year yield is at 3.156% and the 2-10 yield spread is at 270bps, widening slightly by 1bps since Friday morning.
