Light Data Week. EU Focus.

There are no important fundamentals this morning and only Consumer Credit (Noon.)

Wholesale Trade (Tuesday), Business Inventories (Thursday) and International Trade, Import/Export Prices and Consumer Sentiment (Friday) are what we shall see the rest of the week apart from the usual weekly data. Here’s a recap/outlook of all recent economic data.

The discussion as to where Treasury yields and mortgage rates will go in the course of 2012 is divided. Fundamentals are modestly stronger indicating modestly higher yields but the fact is that it is not U.S. fundamentals which will drive Treasuries but concern in the EU. Today’s WSJ web site has a piece titled Merkel, Sarkozy Pile Pressure on Greece making one think that perhaps nothing has really happened.

Until someone eats the losses on sovereign EU debt and the banks taking the losses are recapitalized no solution will be in view.