May 11, 2011
Nevada Real Estate
This week starts out a little slow, but don’t let that fool you:
Heavy amounts of long-term debt will be issued this week in Treasury Auctions. Those auctions will equal $72 Billion with $24 Billion in 10-year Notes and $16 Billion in 30-year Bonds. With rates having moved to the best levels of 2011, we may see tepid buying interest for securities at these rates.
Inflation reports will be in the news again this week, with the Producer Price Index (PPI) on Thursday and the Consumer Price Index (CPI) on Friday. Last month, these reports indicated that inflation is on the rise, but it remains somewhat tame for the moment in terms of what consumers are experiencing. With so much concern over the possibility of future inflation, you can bet the markets will be watching these reports closely.
Retail sales will also be released on Thursday. This is the most timely indicator of broad consumer spending patterns.
Thursday we’ll also see the weekly Initial and Continuing Jobless Claims Report. Last week, Initial Jobless Claims came in at 474,000 which, unfortunately, was well above the 400,000 that was expected, and also the highest level in 9 months.
The Consumer Sentiment Index is due out on Friday. This index is important because the level of consumer sentiment is directly related to the strength of consumer spending, which accounts for two-thirds of the economy Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.