The 10-year Treasury is only slightly lower this morning; but that is not as low as it could have been. The 10-year Treasury is -.010% at 4.658%.

To begin with the market’s opening saw the U.S. Balance of Trade grew the widest since September 2005. That raised speculation that first-quarter economic growth will be revised lower. If the quarterly gross domestic product is lower, there will be increased pressure on the FED to cut interest rates. The U.S. trade deficit widened by 10.4% in March to $63.9 billion, marking the largest trade gap since last September. This was higher than the forecast -$59.5B to -$60.1B.

Import Prices were also lower than the expected +0.9% with prices +0.2%

The weekly Initial Jobless Claims is most likely the moderating factor. It was predicted to be higher than last weeks 305,000. Predictions ranged from 315K to 320K. The Labor Department Reported 297,000 workers filed for unemployment insurance for the first time.

We have ye to see the treasury Budget, or a FED governor speech. We will post on those as well as tomorrow’s events this afternoon.

Steve Boxmeyer [612] 799 – 6858
steve@LendWithIntegrity.com