Focus continues to rest with Friday's Payroll Report for April. However, with a possible buyback announcement today, and the quarterly refunding announcement tomorrow, supply issues will also be a factor. This burgeoning surplus continues to hammer the dwindling supply mantra into traders' minds, helping to maintain an underlying bid in the bond. On the flip side, a more aggressive stance may be needed with prices accelerating. The major European stock averages have eased off their best levels, but continue to enjoy modest gains as techs, telecom, and media issues come back in vogue.
Gains are broad-based however following some solid economic data.
Among sector spotlights, consolidation news is fueling solid gains for the telecom sector. Economic data continued to show evidence of a cyclical upturn, but the EUR continues to trade at historical lows. EMU April nudged to new highs at 60.7 versus 59.4 in March after broad based and healthy rises in French and German PMI releases, although Italian PMI disappointed. The price indicator also moved to new highs with effects of euro weakening and oil price rises evident. Asian markets ended the day mixed.