Largely, the news (and picture) remains the same, thus today’s trading should be relatively stable. Concern remains that the EU assistance might not contain the challenges faced by the various EU nations; and money remains in US bonds and notes. Overnight, both Greek and Italian 10 yr’s traded higher (8.05% and 3.88%, respectively) and this gives a picture of the investor concern and position.
In other interesting news over the weekend, Greece is contemplating legal action against US banks (read, Goldman Sachs) for what they believe as contributory to the country’s debt crisis. (As if we were the ones that spent them into an 11% debt-to-GDP ratio.) But finger pointing is easy when life turns hard. And again, we should remember all of that here, as I strongly believe we are looking into what may be our future. I do believe that Goldman cooked the books; but how can Greece sue as they themselves were a beneficiary participant? Again, it’s easy to point fingers when things turn not your way.
Rates should be stable today, pending other breaking news.
Technically, resistance is at 3.53% and 3.54%. A move above 3.63% will signal a trend reversal and move higher. Support is at 3.42% and 3.32%; and a move closing below 3.43% will signal a trend lower. And as of this writing, we’re at 3.45%
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