As we often discuss, lenders tend to be a bit more...

- Jan Preliminary Sentiment 71.3 vs 75.0 Consensus
- 'Current Conditions' 84.8 vs 88.0 consensus
- 'Expectations' 62.7 vs 65.2 consensus
- Sentiment lowest since Dec 2011
- 'Current Conditions' lowest since July 2012
- 'Expectations' lowest since Nov 2011

(Reuters) - Thomson Reuters/University of Michigan Surveys of Consumers' preliminary January consumer sentiment index fell to 71.3 from 72.9 in the final December report, according to a report released on Friday. Economists in a Reuters survey expected a preliminary January sentiment index reading of 75.0.

Survey director Richard Curtin: "The most unique aspect of the early January data was that an all-time record number of consumers - 35 percent - negatively referred to the fiscal cliff negotiations. Importantly, the debt ceiling debate is still upcoming and could further weaken confidence."

On the heels of stronger-than-expected GDP in China and growing speculation about the Bank of Japan's potentially aggressive shift at next week's policy meeting (removing 0.1% rate floor and embarking on open-ended QE), risk markets (equities, Yen, Euro, bond yields) moved higher throughout the Asian hours. This let to 10yr yields to a break of yesterday's highs just before 3am at 1.896.

Europe, however, took things back in the other direction. German Bunds fell from 1.64 to 1.56 in a few short hours and US Treasuries followed a lower magnitude version of the same movement, bringing 10's in the door just under 1.86 and MBS 5 ticks higher at 104-03. These are the same levels that prevail at the moment, as we wait for Consumer Sentiment as the sole economic data of the morning.

As we often discuss, lenders tend to be a bit more...

- Jan Preliminary Sentiment 71.3 vs 75.0 Consensus
- 'Current Conditions' 84.8 vs 88.0 consensus
- 'Expectations' 62.7 vs 65.2 consensus
- Sentiment lowest since Dec 2011
- 'Current Conditions' lowest since July 2012
- 'Expectations' lowest since Nov 2011

(Reuters) - Thomson Reuters/University of Michigan Surveys of Consumers' preliminary January consumer sentiment index fell to 71.3 from 72.9 in the final December report, according to a report released on Friday. Economists in a Reuters survey expected a preliminary January sentiment index reading of 75.0.

Survey director Richard Curtin: "The most unique aspect of the early January data was that an all-time record number of consumers - 35 percent - negatively referred to the fiscal cliff negotiations. Importantly, the debt ceiling debate is still upcoming and could further weaken confidence."

On the heels of stronger-than-expected GDP in China and growing speculation about the Bank of Japan's potentially aggressive shift at next week's policy meeting (removing 0.1% rate floor and embarking on open-ended QE), risk markets (equities, Yen, Euro, bond yields) moved higher throughout the Asian hours. This let to 10yr yields to a break of yesterday's highs just before 3am at 1.896.

Europe, however, took things back in the other direction. German Bunds fell from 1.64 to 1.56 in a few short hours and US Treasuries followed a lower magnitude version of the same movement, bringing 10's in the door just under 1.86 and MBS 5 ticks higher at 104-03. These are the same levels that prevail at the moment, as we wait for Consumer Sentiment as the sole economic data of the morning.

- Jan Preliminary Sentiment 71.3 vs 75.0 Consensus
- 'Current Conditions' 84.8 vs 88.0 consensus
- 'Expectations' 62.7 vs 65.2 consensus
- Sentiment lowest since Dec 2011
- 'Current Conditions' lowest since July 2012
- 'Expectations' lowest since Nov 2011

(Reuters) - Thomson Reuters/University of Michigan Surveys of Consumers' preliminary January consumer sentiment index fell to 71.3 from 72.9 in the final December report, according to a report released on Friday. Economists in a Reuters survey expected a preliminary January sentiment index reading of 75.0.

Survey director Richard Curtin: "The most unique aspect of the early January data was that an all-time record number of consumers - 35 percent - negatively referred to the fiscal cliff negotiations. Importantly, the debt ceiling debate is still upcoming and could further weaken confidence."