NEWS / Foreign Exchange

Treasury Market Preview

• *** ECONOMIC SCHEDULE ***
• US Sep Durable Goods Orders: 1.5%e || -4.9% prior [8:30 et]
• US Sep Durables Ex-Transportation: 0.7%e || -1.8% prior [8:30 et]
• US Initial Jobless Claims: 320Ke || 337K prior [8:30 et]
• US Continuing Claims: 2530Ke || 2534K prior [8:30 et]
• US Treasury??™s Lowery to speak in Chicago [9:45 et]
• US Sep New Home Sales: 770Ke || 795K prior [10:00 et]
• US Sep Help Wanted Index: 23e || 23 prior [10:00 et]
• US Treasury to hold 5-year note auction
• *** EUROPEAN NEWS OVERNIGHT ***
• GE Sep Import Price Index: M/M 0.6% v 0.4%e || Y/Y 1.3% v 1.2%e
• FR Oct Business Confidence: 108 v 108e || Prior revised from 110 to 109
• FR Oct Production Outlook Indicator: 7 v 5 e || Prior revised from 7 to 6
• FR Oct Own-Company Production Outlook: 20 v 13e [highest since Jan 2001] || Prior revised from 16 to 18
• SP Sep Producer Prices: M/M 0.3% v 0.3%e || Y/Y 3.4% v 3.3%e
• SW Sep PPI: M/M 0.6% v 0.4%e || Y/Y5.0% v 4.8%e
• SW Sep Trade Balance [sek]: 8.2B v 7.5Be || Prior revised from 600M to 3.3B
• GE Oct IFO Business Climate: 103.9 v 103.7e
• GE Oct IFO Current Assessment: 109.6 v 109.3
• GE Oct IFO Expectations: 98.6 v 98.3
• EU Almunia: High oil and commodity prices are hitting the economy
• EU Almunia The financial market turmoil is not yet over
• GE IFO Russ: Interest rate cut from the ECB is not necessary; The wait and see approach is the best approach
• GE IFO Russ: Euro is not at a threshold of pain for companies
• GE IFO Carstensen: Domestic demand is partly offsetting the strong Euro
• GE IFO Carstensen: Does not see ECB rate cut on the table
• GE Government: Confirms that boosts its 2007 GDP outlook to 2.4% from 2.3% and cuts the 2008 outlook to 2.0% from 2.4% [leaked early yesterday]
• *** ASIAN NEWS OVERNIGHT ***
• NZ RBNZ keeps rates on hold at 8.25% as expected
• JP Sep Crop Service Prices: 1.4% v 1.0%e || Prior revised from 1.0% to 1.1%
• CH Q3 GP 11.5% v 11.5%e
• CH Sep Producer Price Index Y/Y: 2.7% v 2.7%e
• CH Sep Purchasing Price Index Y/Y: 3.6% v 3.8% prior
• CH Sep Consumer Price Index Y/Y: 6.2% v 6.3%e
• CH Sep Retail Sales: 17.0% v 17.1%e  || Retail Sales YTD: 15.9% v 15.7% prior
• CH Sep Industrial Production Y/Y: 18.9% v 17.5%e || Industrial Production YTD: 18.5% v 18.4% prior
• SK Q3 Preliminary GDP at Constant Prices: Q/Q 1.4% v 1.5%e || Y/Y 5.2% v 5.1%e
• JP Sells ??725.2B in 20-year bonds with an average yield of 2.145% and a bid-to-cover of 3.73x
• JP Shinohara: BOJ needs to consider the impact from slower US growth when making policy decisions
• JP Shinohara: The carry trade has virtually disappeared
• JP Shinohara: Consumer prices are likely to be positive in the near future
• JP Tsuda: Does not want Japan to delay fiscal reform efforts