This week some of the focus will be on EU.  Global inflation is falling as the weaker economies struggle to keep prices despite their downward pressures.

Today's ADP data showed that the employment sector is not growing.  The current job market is not able to match the new job entrants in the labor force.  This is believed to be due to fear of health care costs, potential tax increases, soft retail numbers, slowed consumer spending and increased regulations.

This morning showed that total mortgage applications had increased 1.8% from last weeks report.

Treasury will increase its auctions, despite the increase in tax revenue.

March construction spending and April's ISM manufacturing index pushed stocks down and the 10 yr. note to 1.63%.

At 2PM, the FOMC will release its policy statement which is likely to confirm that the Fed will continue its QE purchasing commitment.

It is becoming more and more likely that the 10 yr. note will continue to decrease, although this decline is expected to be slow.

- Michael Corboy