January 16, 2019 9:30 a.m. Morning Market Moves - by- Lester Murray

Bonds have slipped off high-center with a modest sell-off that has pushed Treasury yields up by a handful of basis points across the curve. The Ten-Year yield has edged up by about that amount to 2.74%.  Equities are off to a good start mainly due to some unexpectedly positive earnings reports from some of the big banks. But, most news this morning centers around Brexit after Theresa May's plan for the big European divorce was narrowly defeated in yesterday's Parliamentary vote 432-202. Mrs. May did not cover the spread. No one seems too sure about what happens next. It almost makes our partial shutdown look like no big deal.

But, if you were anxiously awaiting today's publication of Retail Sales, that's not going to happen. The Bureau of Economic Analysis is part of the partial shutdown and they're the ones who keep track of such things. One positive for the bond market that seems to be ignored for the  moment is this morning's report on trade inflation.  The Bureau of Labor Statistics is still open for business and it reported this morning that its Import Price Index fell by 1% in December with Export Prices slipping by 0.7%. A bit of good news from the National Association of Homebuilders came in the form of the Housing Market Index.  It edged up slightly to 58 from 56.