The curve steepened overnight in response to increased European and US supply, with the 10-year settling in at 2.52 currently. The spread between the 2 and 10-year parts of the curve is sitting at 56 bps, up 4 bps from yesterday’s close; but even with this increase, the curve is at its flattest level since the crisis. Risk assets rallied, with the Nikkei up 0.6% and oil up 0.2%. Today is light in terms of economic data with only the NFIB Small Business Optimism Index reading in addition to the JOLTS job openings number on the docket.

Hafizan Hamzah
Director, Investment Management Group

01/08Consumer Credit$18.000b$27.951b$20.519b$20.532b
01/09NFIB Small Business Optimism107.8104.9107.5
01/09JOLTS Job Openings60255996
01/10MBA Mortgage Applications0.70%
01/10Import Price Index MoM0.40%0.70%
01/10Import Price Index ex Petroleum MoM0.10%0.10%
01/10Import Price Index YoY3.10%3.10%
01/10Export Price Index MoM0.30%0.50%
01/10Export Price Index YoY3.10%
01/10Wholesale Inventories MoM0.70%0.70%
01/10Wholesale Trade Sales MoM0.60%0.70%
01/11PPI Final Demand MoM0.20%0.40%
01/11PPI Ex Food and Energy MoM0.20%0.30%
01/11PPI Ex Food, Energy, Trade MoM0.20%0.40%
01/11PPI Final Demand YoY3.00%3.10%
01/11PPI Ex Food and Energy YoY2.50%2.40%
01/11PPI Ex Food, Energy, Trade YoY2.40%
01/11Initial Jobless Claims245k250k
01/11Continuing Claims1920k1914k
01/11Revisions: Philadelphia Fed Manufacturing Index
01/11Bloomberg Jan. United States Economic Survey
01/11Bloomberg Consumer Comfort51.8
01/11Monthly Budget Statement-$26.5b-$138.5b
01/12CPI MoM0.10%0.40%
01/12CPI Ex Food and Energy MoM0.20%0.10%
01/12CPI YoY2.10%2.20%
01/12CPI Ex Food and Energy YoY1.70%1.70%
01/12CPI Index NSA246.362246.669
01/12CPI Core Index SA253.724
01/12Retail Sales Advance MoM0.50%0.80%
01/12Retail Sales Ex Auto MoM0.40%1.00%
01/12Retail Sales Ex Auto and Gas0.40%0.80%
01/12Retail Sales Control Group0.40%0.80%
01/12Real Avg Weekly Earnings YoY0.80%
01/12Real Avg Hourly Earning YoY0.20%
01/12Business Inventories0.40%-0.10%