January 10, 2018
Weakness in inflation is a problem that's not improving. Import and export prices, which had been showing some life, came in flat in December and do not point to any improvement for tomorrow's report on prices at the wholesale level or Friday's key report on consumer prices.
Strong demand for the afternoon's 10-year Treasury auction reversed early selling and triggered an afternoon rush into bonds. The 10-year Treasury yield, which had been up on the day, fell 4 basis points following the auction to end unchanged at 2.55 percent. Stocks posted slight losses with the Dow down 0.1 percent to 25,369. An eighth straight draw in weekly oil inventories helped oil extend its run higher, gaining another 50 cents to $63.50.