Fundamentals 5/23

There are no significant releases of economic fundamentals today. New Home Sales is Tuesday. Durable Goods is Wednesday. Second look at 1Q2011 GDP is Thursday. The first release of GDP uses only 2 of 3 months data each quarter and approximations of exports, imports and investments. Personal Income and Expenses is Friday.

Domestic markets today are being driven by the well-based (and correct) concern that the Eurozone debt problem has not been solved. The difficulty of having a single currency for a group of countries with vastly differing senses of fiscal responsibility is becoming apparent. A weaker Euro means a stronger dollar which should mean lower commodity prices. Eurozone concern results in Treasury safe-haven buying and lower Treasury yields and mortgage rates.