One major bright spot for the US economy seems to be the forward look of US business. That is not necessarily good for rates though.
There was only one major economic report for Tuesday and that was the ISM-Services. It was predicted to be 55.0 to 56.0. The Institute of Supply Managers published the service sector index at 09:00cdt {14:00gmt} at 57.4.

The rate the 10-year treasury spiked immediately after that number to its mid morning trading level of 4.970% which is +.041% higher than yesterday’s close. The 10-year Treasury was a bit higher before the ISM Service release but remained close to the ‘flat’ level +.08 to 4.937%.

There was some good news for next week’s retail sales report on 13 June. Both UBS Store Sales and Redbook Survey have been trending downward in the last few weeks. This morning’s UBS Store Sales were -0.5% in week-to-week measurement, and +2.3% in year-to-year analysis. Redbook was up only 1.8%.

Neither number has any estimates, and both are largely ignored by the bond market. Still the can give an indication to next weeks sales numbers. When the estimates come out, they should be lower.

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