TREASURY YIELDS RISE IN OVERNIGHT TRADING IN EUROPE

The 10 year treasury yield has risen another 6 bps to a 3.38 yld in Europe in overnight trading. The shorter end of the curve is under some pressure as economists predict growing strength in the world economies for 2011. Munis could be under more pressure as ratios deteriorate. Large calendar.. mostly BABS.. might have to go to higher yields to attract buyers at this time of year. The 5-10 ye range in munis will be very susceptible to this pressure. MMD is behind the curve in yields  and could see decent hikes in the short end of the curve.