- US NFIB Small Business Optimism index declined to 92.6 in Dec vs 94.5 expected and 93.2 previously.
- The Japanese FinMin said that they want to buy more than 20% of the EFSF bond issuance that will go to help Ireland. Some strategists think that Japan may need to sell USD from its FX reserves to buy EUR for this.
- Chinese M2 growth accelerated to 19.7% YoY in Dec vs 19.0% expected and 19.5% previously. Also, both new loans as well as FX reserves increased more than expected.
- China released details on its 2010 bank lending and reveals it overshot its initial target; officials promise more tightening measures in ’11; banks lent 7.9T yuan in ’10 vs. the target of 7.5T. M2 growth hit 19.7% Y/Y in Dec, above the 17% target and above analysts’ forecasts of 18.9%. Reuters
- Treasuries sold off in anticipation of auctions the next couple days. If prior patterns hold, yields will hit a high tomorrow and rally on Thursday for the bond auction.